Question

At the beginning of December, Global Corporation had $2,400 in supplies on hand. During the month, supplies purchased amounted to $3,500, but by the end of the month the supplies balance was only $2,500. What is the appropriate month-end adjusting entry?

Answer 1

Answer and Explanation:

The appropriate month-end adjusting entry is shown below:

Supplies expense Dr $3,400

To Supplies $3,400

(being supplies expense is recorded)

Working note:

= Supplies on hand at the beginning + purchase - end of the month

= $2,400 + $3,500 - $2,500

= $3,400

Here the supplies expense is debited as it increased the supplies and credited the supllies as it decreased the assets