Of the $1,600 in supplies that were on hand at the beginning of the month,$400 remains at the end.What is the adjusting journal entry required at the end of the month?

Question

Quizplus · Accepted Answer

The correct adjusting journal entry is to debit Supplies Expense for $1,200 and credit Supplies for $1,200. This reflects the use of $1,200 in supplies during the month, reducing the asset (Supplies) and recognizing the expense (Supplies Expense).

Of the $1,600 in Supplies That Were on Hand at the Beginning