A company has $800 in beginning supplies and $150 of supplies on hand at the end of the month. The adjusting entry for this company is a debit to:

Question

Quizplus · Accepted Answer

The beginning supplies of $800 and ending supplies of $150 indicate that $650 worth of supplies were used during the month. Therefore, the adjusting entry should be a debit to Supplies Expense for $650 and a credit to Supplies for $650. Option C matches this entry.

A Company Has $800 in Beginning Supplies and $150 of Supplies