All Handles,Inc.began operations on February 1,2012,and purchased $4,000 of supplies.On December 31,2012,$1,200 were still on hand.The December 31,2012,entry would include a
A)debit to Supplies Expense for $1,200.
B)debit to Supplies for $4,000.
C)credit to Supplies Expense for $1,200.
D)credit to Supplies Expense for $2,800.
E)debit to Supplies Expense for $2,800.

Question

Quizplus · Accepted Answer

The correct entry involves debiting Supplies Expense for $2,800, which is the amount of supplies used during the year ($4,000 purchased - $1,200 still on hand). This reflects the expense of the supplies that were actually consumed.