The supplies account shows a beginning balance of $3,000. Assume the supplies account shows an entry as a debit for $5,500 representing supplies purchased during the period and the supplies inventory at year end is $1,700. The adjusting entry involves a:

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The correct adjusting entry is a debit to supplies expense for $6,800, which is calculated by adding the beginning balance of supplies ($3,000) to the purchases during the period ($5,500) to get the total supplies available ($8,500), and then subtracting the ending inventory of supplies ($1,700) to find the amount used ($6,800). This amount used is the supplies expense for the period.

The Supplies Account Shows a Beginning Balance of $3,000