Question

Purchases of supplies for cash during December were $3,000. Supplies on hand at the end of December equal $2,750. Record adjusted entry

Answer 1

The adjusted entry for supplies purchased for cash in December and supplies on hand at the end of December involves debiting supplies and crediting cash for the purchases, and debiting supplies expense and crediting supplies for the adjustment.

Step-by-step explanation:

When supplies are purchased for cash, it is recorded as an increase in supplies and a decrease in cash. Therefore, the journal entry to record the purchase of supplies for cash in December would be:

Debit: Supplies (increase)

Credit: Cash (decrease)

To adjust for the supplies on hand at the end of December, we need to decrease the supplies by the amount on hand. The adjusted journal entry would be:

Debit: Supplies (decrease)

Credit: Supplies Expense (increase)

Supplies Expense represents the portion of supplies used during December.