During the company's first year of operations,supplies costing $5,800 were purchased and recorded in the Supplies account.At the end of the period,supplies costing $3,000 were left.What adjusting entry must be made to recorded?

Question

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The adjusting entry required in this scenario is to recognize the cost of supplies that have been used up or consumed during the period. This requires a debit to the Supplies Expense account (to increase the expense) and a credit to the Supplies account (to reduce the asset). The difference between the initial amount of supplies purchased and the supplies remaining at the end of the period is the amount consumed, which is $5,800 - $3,000 = $2,800. Therefore, the correct entry is to debit Supplies Expense and credit Supplies for $2,800, which is option D. Options A, B, and C do not reflect the correct treatment of supplies consumption in accordance with generally accepted accounting principles.

During the Company's First Year of Operations,supplies Costing $5,800 Were