The Town Laundry Ltd.purchased $5,500 worth of laundry supplies on June 2 and recorded the purchase as an asset in the Supplies account.On June 30, a count of the laundry supplies indicated only $3,000 on hand.The adjusting entry that should be made by the company on June 30 is

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Quizplus · Accepted Answer

The correct adjusting entry is to debit Supplies Expense for $2,500 and credit Supplies for $2,500. This reflects the use of $2,500 worth of supplies during the period ($5,500 initial supplies minus $3,000 supplies remaining).