Question

A physical count of supplies on hand at the end of may for Masters, inc. Indicated $1,253 of supplies on hand. The general leger balance before any adjusting is $2,130. What is the adjusting entry for office supplies that should be recorded on may 31?

Answer 1

Answer: Debit Supplies Expense $877 and credit Supplies $877

Explanation:

From the question, we are informed that a physical count of supplies on hand at the end of may for Masters, inc. showed $1,253 of supplies on hand while the general leger balance before any adjusting is $2,130.

The adjusting entry for office supplies that should be recorded on may 31 will be the difference in the physical count and general ledger balance which is ($2130 - $1253) = $877. We then have to debit Supplies expense $877 and then credit supplies $877