The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

Question

Heather Frye

Business

26 December, 05:09

The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies for use in its operations. On February 29, Bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

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Addisyn Henry · Answer 1

Before passing the journal entry, first we have to compute the adjusted balance of the inventory which is shown below:

= Opening balance of inventory + purchase of inventory - the closing balance of inventory

= $2,000 + $12,000 - $1,500

= $12,500

Now the journal entry would be:

Supplies expense A/c Dr $12,500

To Supplies A/c $12,500

(Being supplies account is adjusted)