Question

The supplies account balance on february 1, 2016 was $1,400. during the month of february bravo purchased $12,000 of supplies for use in its operations. on february 29, bravo warehouse chief inventoried supplies and determine the value on hand was $1,500. use this information to prepare the general journal entry (without explanation) for the required end of the month adjustment.

Answer 1

According to the given information, the supplies beginning balance as on Feb. 1 2016was $1400 and Supplies purchase during the February month were total $12,000 and the supplies ending balance as, on Feb. 29, 2016, is $1,500. It means the supplies used is = 1400+12000-1500 = $11,900.

Adjusting journal entry at the end of the month shall be as follows:

Date: Feb. 29, 2016:

Supplies Expense Debit          $11,900

              Supplies Credit                           $11,900