Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

Question

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
 If on December 31,2013,supplies on hand were $40,the adjusting entry would contain a

Quizplus · Accepted Answer

The Supplies account has a balance of $300, which includes the original amount of supplies purchased and any supplies used during the year. However, since supplies on hand at the end of the year are only $40, it means that $260 worth of supplies were used during the year. This amount should be recorded as an expense in the adjusted trial balance, which would be done with a debit to Supplies Expense for $260.

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