During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Austin and Associates make if $8,000 worth of supplies were on hand at year-end?

Question

Kae

Business

7 September, 19:41

During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Austin and Associates make if $8,000 worth of supplies were on hand at year-end?

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Answers (1)

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Patricia Pratt · Answer 1

Supplies Expense = $24,000

Supplies = $24,000

Explanation:

given data

bought for CPA firm = $32,000

supplies on hand = $8,000

solution

we know here that when $8000 supplies available out of $32,000

so supplier during period will be = $32,000 - $8000

supplies expense = $24000

and that is express as

Accounts title Debit Credit

Supplies expense $24,000

Supplies $24,000