A company purchased $6,000 worth of supplies in August and recorded the purchase in the Supplies account. On August 31, the fiscal year-end, the supplies count equaled $3,200. The adjusting entry would include a $2,800 debit to Supplies.

Question

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The adjusting entry would include a $2,800 credit to the Supplies account to decrease it to the actual count of $3,200.

A Company Purchased $6,000 Worth of Supplies in August and Recorded