Answer:
31 March Supplies Expense 1500 Dr
Supplies Account 1500 Cr
Explanation:
We prepare the adjusting entry at the end of the period. Here the adjusting is done at the end of the month.
Fost, we calculate the value of supplies we have.
Supplies = Opening balance + purchases
Thus, supplies account has a balance of = 500 + 1200 = $1700
During the month, we used supplies of $1500. Thus the remaining balance in supplies account at the end of the month is = 1700 - 1500 = 200
To reduce the supplies account balance and charge the value of used supplies, We debit the supplies expense account by $1500 and credit the supplies account by $1500.
Answer:
Credit of $1,500 to the supplies account.
Explanation:
Basically, the adjusting entry of supplies refers the value of supplies used during a particular period. This is estimated by deducting the closing value of supplies from the addition of opening value of supplies and supplies purchased during the month.
Since we are already given the value supplies used as $1,500 in the question, the $1,500 is the value of the adjusting entry that will be journalized be as follows:
Minutemen Corp.
March 31
Debit: Supplies expense account with $1,500
Credit: Supplies account with $1,500
Being the adjusting entry for the month of March.
Therefore, the March 31 adjusting journal entry should include a credit of $1,500 to the supplies account.
