The entry to adjust for the cost of supplies used during the accounting period is
A) debit Supplies Expense; credit Supplies
B) debit Owner Capital; credit Supplies
C) debit Accounts Payable; credit Supplies
D) debit Supplies; credit Owner Capital

Question

Quizplus · Accepted Answer

This is the correct entry to adjust for the cost of supplies used during the accounting period, as it recognizes an expense (Supplies Expense) and reduces the asset (Supplies) by the same amount. Option B is incorrect as it incorrectly records the cost of supplies as an owner's investment, rather than an expense. Option C is incorrect as it records the cost of supplies as a liability, which is also incorrect. Option D is incorrect as it incorrectly records the reduction of the supplies asset as an owner's capital account.

The Entry to Adjust for the Cost of Supplies Used