Question

The balance in the supplies account, before adjustment at the end of the year, is $9,000. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,575. If an amount box does not require an entry, leave it blank.

Answer 1

Explanation:

The adjusting journal entry is as follows:

Supplies expense A/c Dr  $7,425

                   To Supplies A/c  $7,425

(Being supplies account is adjusted)  

The supplies expense is computed by  

= Supplies balance before adjustment - supplies on hand  

= $9,000 - $1,575

= $7,425

For recording this adjusting entry, we debited the supplies expense account and credited the supplies account