Question

What adjusting entry did you make in the journal in Exam Figure 5 for the Supplies Expense?

A. Credit Supplies Expense $542.92 and debit Supplies $542.92
B. Debit Supplies Expense $342.92 and credit Supplies $342.92
C. Credit Supplies Expense $200 and debit Supplies $200
D. Debit Supplies Expense $200 and credit Supplies $200

Answer 1

The adjusting entry made in the journal in Exam Figure 5 for the Supplies Expense is: Debit Supplies Expense $200 and credit Supplies $200.

Step-by-step explanation:

In Exam Figure 5, the adjusting entry for the Supplies Expense would be option D: Debit Supplies Expense $200 and credit Supplies $200.

This adjusting entry is necessary to account for the supplies that were used during the accounting period. By debiting the Supplies Expense account, we increase the expense, reflecting the cost of supplies consumed. At the same time, we credit the Supplies account to reduce its balance, since supplies have been used up.