Question

if a business brought $3000 in supplies on may 1 and at the end of the month had $1000 left in supplies, how much would it debit supplies expense for an adjusting entry

Answer 1

The business would debit supplies expense for $2000 in the adjusting entry, which is the difference between the purchased supplies of $3000 and the remaining supplies of $1000.

Step-by-step explanation:

If a business purchased $3000 in supplies on May 1st and had $1000 of supplies left at the end of the month, it would debit supplies expense for the difference between the amount of supplies purchased and the amount remaining. To calculate the supplies expense for the adjusting entry:

• Purchased Supplies: $3000
• Supplies Remaining: $1000
• Supplies Expense = Purchased Supplies - Supplies Remaining
• Supplies Expense = $3000 - $1000
• Supplies Expense = $2000

Therefore, the business would record a $2000 debit to supplies expense in the adjusting entry.