Question

During their first year, Austin and Associates bought $32,000 worth of supplies for their CPA firm. When purchased, the supplies were debited to Supplies and credited to Accounts Payable. What adjusting entry would Austin and Associates make if $8,000 worth of supplies were on hand at year-end?

Answer 1

Answer:

Supplies Expense  = $24,000

Supplies  = $24,000

Explanation:

given data

bought for CPA firm = $32,000

supplies on hand = $8,000

solution

we know here that when $8000 supplies available out of $32,000  

so supplier during period will be = $32,000  - $8000

supplies expense = $24000

and that is express as

     Accounts title                            Debit              Credit

    Supplies expense                     $24,000  

    Supplies                                                             $24,000

Answer 2

The adjusting entry that Austin and Associates would make is a Debit to  Supplies Expense ( $24,000) and Credit to Supplies ($24,000)/

The amount of $8000  is the supplies available, out of $32,000.

Supplies expense period will be = $32,000  - $8000

supplies expense = $24000

Accounts title                            Debit         Credit

Supplies expense                     $24,000  

   Supplies                                                   $24,000

In conclusion, the adjusting entry that Austin and Associates would make is a Debit to  Supplies Expense ( $24,000) and Credit to Supplies ($24,000)/

Raed more about adjusting entry

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