At the end of the month,the adjusting journal entry relating to the use of supplies would include a:
A)debit to Supplies and a credit to Supplies Expense.
B)credit to Supplies and a debit to Supplies Expense.
C)debit to Supplies and a credit to a revenue account.
D)credit to Supplies and a debit to Cash.

Question

Quizplus · Accepted Answer

The correct adjusting entry for the use of supplies involves a credit to the Supplies account to decrease it (reflecting the use of supplies) and a debit to the Supplies Expense account to increase it (reflecting the expense incurred from using the supplies). This matches the accounting principle that expenses should be recognized in the period they are incurred.

At the End of the Month,the Adjusting Journal Entry Relating