Question

A total of $3,900 in supplies was purchased during the year. At the end of the year $980 of the supplies were left. The adjusting entry needed at the end of the year is. Multiple Choice debit Supplies Expense $3,900, credit Supplies $3,900 O debit Supplies Expense $2.920, credit Supplies $2,920 O debit Supplies Expense $980; credit Supplies $980 debit Supplies $2.920. credit Supplies Expense $2.920

Answer 1

Solution: The answer is B. debit Supplies Expense $2,920; credit Supplies $2,920

Journal Entry:

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Supplies Expense	$             2,920
	Supplies		$                     2,920
	( Being supplies expense )

In total we have used $ 2,920 supplies during the year. So, we have to decrease those used supplies from Supplies account by crediting it.

So, remaining options A,C,D are incorrect.