Supplies on hand were $900 at the start of the year.At the end of the year,it was determined that $350 of supplies had been used.What is the adjusting entry for supplies?

Question

Quizplus · Accepted Answer

The adjusting entry for supplies is to decrease the asset account (Supplies) and increase the expense account (Supplies Expense) by the amount of supplies used ($350). Therefore, the correct choice is to debit Supplies Expense for $350 and credit Supplies for $350. Option A and B incorrectly record a higher amount of supplies expense than what was actually used. Option D incorrectly records both accounts in reverse.

Supplies on Hand Were $900 at the Start of the Year.At