Use this information to answer the following question. The trial balance for Sanchez Company appears as follows:
If on December 31, 2010, supplies on hand were $20, the adjusting entry would contain a

Question

Use this information to answer the following question. The trial balance for Sanchez Company appears as follows:
 If on December 31, 2010, supplies on hand were $20, the adjusting entry would contain a

Quizplus · Accepted Answer

According to the trial balance, the Supplies account currently has a balance of $150. However, the supplies on hand are only $20, which means $130 worth of supplies have been used up. To reflect this in the financial statements, an adjusting entry needs to be made, debiting Supplies Expense for $130 and crediting Supplies for $130. Therefore, the correct choice is option C.

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