Office Depot records supplies in the Supplies account when purchased. At the end of the month, the adjusting journal entry to record the use of supplies would include: a. An increase to supplies and an increase to expenses b. An increase to supplies and an increase to revenue c. A decrease to supplies and an increase to expenses d. A decrease to supplies and a decrease to cash.

Question

Leland Dominguez

Business

14 August, 19:45

Office Depot records supplies in the Supplies account when purchased. At the end of the month, the adjusting journal entry to record the use of supplies would include: a. An increase to supplies and an increase to expenses b. An increase to supplies and an increase to revenue c. A decrease to supplies and an increase to expenses d. A decrease to supplies and a decrease to cash.

+3

Answers (1)

Know the Answer?

Lailah George · Answer 1

C) A decrease to supplies and an increase to expenses

Explanation:

When the supplies are bought they should be recorded as following:

Dr Supplies account Cr Cash account (or Accounts Payable account)

At the end of the month after the supplies are used, then the records should be:

Dr Operating Expenses account Cr Supplies account