At March 1, 2015, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a:

Question

Aryana Chambers

Business

5 May, 22:05

At March 1, 2015, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a:

+1

Answers (1)

Know the Answer?

Amari Lozano · Answer 1

31 March Supplies Expense 1500 Dr

Supplies Account 1500 Cr

Explanation:

We prepare the adjusting entry at the end of the period. Here the adjusting is done at the end of the month.

Fost, we calculate the value of supplies we have.

Supplies = Opening balance + purchases

Thus, supplies account has a balance of = 500 + 1200 = $1700

During the month, we used supplies of $1500. Thus the remaining balance in supplies account at the end of the month is = 1700 - 1500 = 200

To reduce the supplies account balance and charge the value of used supplies, We debit the supplies expense account by $1500 and credit the supplies account by $1500.