Question

The unadjusted trial balance for Supplies shows a normal balance of $634. If $432 of supplies were used during the​ period, the adjusted balance for Supplies would be​ a:

Answer 1

The adjusted balance for Supplies would be​ a $202

Step-by-step explanation:

The adjusted balance for supplies is shown below:

= Normal balance - supplies used

= $634 - $432

= $202

We deduct the supplies used the balance from the normal balance because the supplies are already used, and the used supplies are of no use that's why we deduct it from the supply balance.

We pass the journal entry for better understanding

Supplies expense A/c Dr $202

To Supplies A/c $202

(Being supplies account are adjusted)