Question

Ragland Corp. purchases supplies on account for $1,000 and appropriately records the transaction in an asset account. A count of inventory at year-end indicates that $300 of supplies are remaining. The adjusting journal entry required at year-end includes (Select all that apply.)

a)credit to supplies expense $700.
b)debit to supplies expense $700.
c)debit to supplies on hand $700.
d)credit to supplies on hand $700
e)debit to supplies on hand $300.
f)credit to supplies on hand $300

Answer 1

The adjusting journal entry required at year-end includes a debit to supplies expense $700 and a credit to supplies on hand $700.

Step-by-step explanation:

The adjusting journal entry required at year-end includes a debit to supplies expense $700 and a credit to supplies on hand $700. These entries are necessary to decrease the asset account for supplies on hand and record the expense of the supplies that were used during the year. The remaining supplies worth $300 will be accounted for in the ending inventory.