Question

if a business bought $3,000 in supplies on may 1 and at the end of the month had $1,000 left in supplies, how much would it debit supplies expense for an adjusting entry

Answer 1

The business would debit $2,000 to supplies expense for an adjusting entry, which is the cost of supplies used during the month calculated by subtracting the supplies remaining at the end of the month from the initial supply cost.

Step-by-step explanation:

If a business bought $3,000 in supplies on May 1 and at the end of the month had $1,000 left in supplies, the amount it would need to debit supplies expense for an adjusting entry is the cost of the supplies that were used during the month.

To calculate this, you would subtract the cost of the supplies remaining at the end of the month from the total cost of supplies at the beginning of the month.

This means $3,000 (initial supplies) - $1,000 (remaining supplies) = $2,000 would be debited to supplies expense.