Question

A company's unadjusted trial balance showed 1,000 worth supplies. In the first month, the company used supplies worth350. How would you adjust the supplies account?

1) A debit to the supplies account and a credit to the supplies expense account for 350.
2) A debit to the supplies account and a credit to the supplies expense account for 650.
3) A debit to the supplies expense account and a credit to the supplies account for 350.
4) A debit to the supplies expense account and a credit to the supplies account for 650.

Answer 1

When adjusting the supplies account for supplies used, a debit entry is made to the Supplies Expense account and a credit entry to the Supplies account for the amount used.

Step-by-step explanation:

When adjusting the supplies account, you need to account for the supplies used during the month. Since supplies worth $350 were used, you would make a debit entry to the Supplies Expense account and a credit entry to the Supplies account for $350.

Therefore, the correct adjustment would be option 3) A debit to the supplies expense account and a credit to the supplies account for 350.