The adjusting entry to account for the use of supplies consists of:
A)a debit to Supplies and a credit to Accumulated Depreciation.
B)a debit to Accumulated Depreciation and a credit to Supplies.
C)a debit to Supplies and a credit to Supplies Expense.
D)a debit to Supplies Expense and a credit to Supplies.

Question

Quizplus · Accepted Answer

When supplies are used up, it reduces the balance of Supplies account. To record this reduction, Supplies Expense account is debited because it is an expense of the period, and the Supplies account is credited. Therefore, the adjusting entry would be a debit to Supplies Expense and a credit to Supplies.

The Adjusting Entry to Account for the Use of Supplies