In: Accounting
The Book Binders Company’s Supplies account balance at the end of the period is $44,000. Supplies totaling $37,600 have been purchased during the period and debited to Supplies. A physical count shows $10,000 worth of supplies on hand at the end of the period.
This is the debit balance of an “Asset” account which is “Unadjusted”
This $ 10,000 should be the “adjusted balance” of the Supplies account.
Supplies Expense = $ 44,000 – $ 10,000 = $ 34,000
Beginning Balance |
$ 6,400.00 |
Debit |
Purchases |
$ 37,600.00 |
Debited by |
Supplies expense |
$ (34,000.00) |
Credited by |
Ending Balance (=Physical balance) [ 6400 + 37600 – 34000] |
$ 10,000.00 |
Debit |