A company had no supplies available at the beginning of August.A company purchased $6,000 worth of supplies in August and recorded the purchase in the Supplies account.On August 31,the fiscal year-end,the physical count of supplies indicates the cost of unused supplies is $3,200.The adjusting entry would include a $2,800 debit to Supplies.

Question

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The adjusting entry would include a $2,800 debit to Supplies Expense and a $2,800 credit to Supplies to record the used portion, not a debit to Supplies.

A Company Had No Supplies Available at the Beginning of August.A