Supplies on hand were $ 1 comma 000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. What is the adjusting entry for supplies?

a. Debit supplies expense, $ 550 ; credit supplies, $ 550

b. Debit supplies expense, $ 450 ; credit supplies, $ 450

c. Debit supplies, $ 450 ; credit supplies expense, $ 450

d. Debit supplies, $ 550 ; credit supplies expense, $ 550

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Business

25 November, 19:04

Supplies on hand were $ 1 comma 000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. What is the adjusting entry for supplies?

a. Debit supplies expense, $ 550 ; credit supplies, $ 550

b. Debit supplies expense, $ 450 ; credit supplies, $ 450

c. Debit supplies, $ 450 ; credit supplies expense, $ 450

d. Debit supplies, $ 550 ; credit supplies expense, $ 550

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Answers (1)

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Richard · Answer 1

Determination of adjusting entry for Supplies used:

In the given case it is given those Supplies on hand were $ 1,000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. It means the adjustment is needed to make for the amount of supplies used $450.

The adjusting entry for Supplies used shall be as follows:

Supplies Expense Debit $450

Supplies Credit $450

(Being adjustment made for Supplies used)

Hence the correct answer is:

b. Debit supplies expense, $ 450; credit supplies, $ 450