During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year-end, office supplies on hand were counted and determined to be $975. The proper adjusting entry crediting supplies and debiting supplies expense will

Question

Zayden Cisneros

Business

15 September, 21:06

During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year-end, office supplies on hand were counted and determined to be $975. The proper adjusting entry crediting supplies and debiting supplies expense will

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Maverick Hamilton · Answer 1

Supplies Expense 1625 Dr

Supplies Account 1625 Cr

Explanation:

First, we need to determine the supplies expense for the period. The supplies expense can be calculated by deducting the year end supplies balance from the supplies account balance.

The supplies expense = 2600 - 975 = $1625

The adjusting entry that will be made at the end of the period is,

Supplies Expense 1625 Dr

Supplies Account 1625 Cr