Kate Corporation began the year with $6,200 in supplies and purchased $12,500 in supplies during the year.At year end,$5,100 in supplies remained on hand.The required adjusting entry would be:

Question

Quizplus · Accepted Answer

The adjusting entry is necessary to reflect the supplies expense used during the year. To calculate the supplies expense, we need to subtract the supplies remaining on hand at the end of the year from the total supplies purchased and available for use during the year:

Total supplies available for use = Beginning supplies + Purchases
Total supplies available for use = $6,200 + $12,500 = $18,700

Supplies expense = Total supplies available for use - Supplies remaining on hand
Supplies expense = $18,700 - $5,100 = $13,600

The adjusting entry to record the supplies expense would be:

Supplies Expense           $13,600
       Supplies                      $13,600

Choice C is correct because it reflects the correct accounts and amounts for the adjusting entry described.

Kate Corporation Began the Year with $6,200 in Supplies and Purchased