During their first year, Ann Zi & Associates bought $96,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable.
What adjusting entry would Ann Zi & Associates make if $24,000 worth of supplies were on hand at year-end?

Question

Quizplus · Accepted Answer

Transfer $96,000 - $24,000 = $72,000 from Supplies to Supplies Expense

During Their First Year, Ann Zi & Associates Bought $96,000