During the month,a company uses up $4,000 of supplies.At the end of the month,the related adjusting journal entry would result in:

Question

Quizplus · Accepted Answer

The usage of supplies represents an expense for the company, and as such, the adjusting journal entry would result in a decrease in the Supplies asset account (debit) and an increase in the Supplies Expense account (credit). Option A is incorrect because there is no increase in liabilities related to the supplies usage. Option B is incorrect because there is no decrease in shareholders' equity related to the supplies usage. Option D is incorrect because there is no loss related to the supplies usage.

During the Month,a Company Uses Up $4,000 of Supplies