When a company makes an end-of-period adjusting entry,which includes a debit to Supplies Expense,the usual credit entry is made to:

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If the adjusting entry includes a debit to Supplies Expense, it means that the company has used some of its supplies during the period. Therefore, the matching principle requires that the cost of the supplies used be recognized as an expense in the period they were used. The usual credit entry in this case is to Supplies, which reduces the balance of the asset account to reflect the amount of supplies that have been used. This is because supplies are typically recorded as an asset until they are used, at which point they are expensed.

When a Company Makes an End-Of-Period Adjusting Entry,which Includes a Debit