Question

The Supplies account had a balance at the beginning of year 3 of $8900 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $53300 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14900 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:

Answer 1

supplies expense 47,300 DEBIT

supplies 47,300 CREDIT

Step-by-step explanation:

`$$Beginning Inventory + Purchase = Ending Inventory + supplies Expense`

8,900 + 53,300 = 14,900 + supplies expense

8,900 + 53,300 - 14,900 = supplies expense

supplies expense = 47,300

Beginning and Purchase will be the supplies available during the period.

this supplies can be used or stored.

if the stored are 14,900 then the diference was used.