Final answer:
The balance in Supplies Expense after adjusting entries represents the cost of supplies used during the fiscal period. It reflects the consumption of supplies, not the total amount purchased or the remaining unused supplies.
Step-by-step explanation:
After adjusting entries, the balance in Supplies Expense represents the supplies used during the fiscal period. When an adjusting entry is made, the amount of supplies expense recorded corresponds to the total cost of supplies that have been consumed during the period. If $1,000 worth of supplies were purchased, but only $600 worth were used, the supplies expense account would show a $600 expense and the remaining $400 would be recorded as supplies on hand — an asset.
The balance in Supplies Expense after adjusting entries represents the supplies that have been used during the fiscal period. This is indicated by the fact that Supplies Expense is an expense account, and expenses are recognized in the period in which they are incurred. Therefore, the balance in Supplies Expense reflects the amount of supplies that have been consumed or used up.