Question

A company started the year with $37494 in supplies. During the year, it purchased S111099 in supplies and these were charged to the supplies expense account. At year-end, there was $17194 in supplies remaining. The year-end adjusting entries will include the following entry to the supplies inventory account: Select one: a. $20300 cr. b. $131399 dr. C. $20300 dr. Cd. No adjusting entry is needed. Check

Answer 1

Correct answer----------(a) $20,300 Cr

Working

Supplies at beginning	$      37,494.00
Supplies purchased	$ 111,099.00
Total supplies available for use	$ 148,593.00
Less: Supplies in the end of year	$      17,194.00
Supplies used and charged as expense	$ 131,399.00

.

Actual supplies expense	$ 1,31,399.00	Debit required
Supplies expense recorded	$ 1,11,099.00	Current debit balance
Supplies expense yet to increase by	$      20,300.00	Adjustment