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28 January, 11:34

At the beginning of the month, supplies were $ 6 comma 000. During the month, $ 7 comma 000 of supplies were purchased. At month's end, 2 comma 000 of supplies are still on hand. What is the bullet adjusting entry? bullet ending balance in the Supplies account? First, prepare the adjusting journal entry for Supplies. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts and Explanations Debit Credit The ending balance in the Supplies account was $.

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  1. 28 January, 11:52
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    Adjusting Entry

    Cost of goods sold (Dr.) $11,000

    Beginning Inventory (Cr.) $6,000

    Purchases (Cr.) $5,000

    Closing Entry

    Ending Inventory (Dr.) $2,000

    Income Summary (Cr.) $2,000

    Explanation:

    The adjusting entry is made by debiting cost of goods sold account which reflects the amount of inventory sold during the month and the entry is credited by beginning inventory of $6,000 and the remaining amount which is $5,000 is credited in purchases account.

    The closing entry is made by debiting the ending inventory by the amount of $2,000 and Income Summary account is credited by the same amount to close the inventory account.
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