Respuesta :
Answer:
Debit Supplies expense $4,200
Credit Supplies (B/s) $4,200
Explanation:
When the purchase was done, the entries posted would have been;
Debit Supplies (B/s) $6,000
Credit Cash account $6,000
Being entries to recognize purchase of supplies.
At the end of the accounting period, $1,800 worth of supplies were still on hand then, cost of supplies utilized
= $6,000 - $1,800
= $4,200
The adjusting entry needed at the end of the period would be
Debit Supplies expense $4,200
Credit Supplies (B/s) $4,200
Being entries to recognize the supplies used up.
Answer:
Cost of goods sold = $6,000- $1,800 = $4,200
Closing Inventories = $1,800
Explanation:
$
Purchase supplies 6,000
Closing inventories (1,800)
Cost of goods sold 4,200
Hence, cost of sales will be $4,200 under income statement while closing inventory of $1,800 will be recorded under current assets in the Balance sheet.
