Question

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,253 of supplies on hand. The general ledger balance before any adjustment is $2,130. What is the adjusting entry for office supplies that should be recorded on May 31

Answer 1

Answer and Explanation:

The journal entry is as follows;

Supplies expense Dr ($2,130 - $1,253) $877

To Supplies $877

(being the supplies expense is recorded)

Here the supplies expense is debited as it increased the expenses while on the other hand the supplies is credited as it decreased the assets. Also both the accounts contains normal debit balance