When a company makes an end-of-period adjusting entry,which includes a debit to Supplies Expense,the usual credit entry is made to:
A)Accounts Payable.
B)Supplies.
C)Cash.

Question

Quizplus · Accepted Answer

If a company makes an end-of-period adjusting entry that includes a debit to Supplies Expense, it means that they have used up some supplies during the period. The usual credit entry is made to the Supplies account to reduce the balance of unused supplies on the balance sheet. Therefore, the correct answer is B) Supplies. Neither Accounts Payable nor Cash are affected by this adjusting entry.

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