In: Accounting
A total of $3,700 in supplies was purchased during the year. By the end of the year, the company had used $2,200 of the supplies. The adjusting entry needed at the end of the year is:
Multiple Choice
debit Supplies $2,200; credit Supplies Expense $2,200
debit Supplies Expense $1,500; credit Supplies $1,500
debit Supplies Expense $2,200; credit Supplies $2,200
debit Supplies Expense $3,700; credit Supplies $3,700
Ans- Journal Entry
Account Title and Explanation | Debit ($) | Credit ($) |
Supplies Expense | 2,200 | |
Supplies | 2,200 | |
(To record supplies expenses) |
Since the problem stated that $2,200 had been used up that is the amount that needs to be credited from the supplies account and recognized as an expense. Hence, the correct option is c)- debit supplies expense- $2,200; credit supplies $2,200.