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 debit Supplies Expense $2,920credit Supplies $2.920 ООО debit Supplies Expense $980; credit Supplies $980 debit Supplies $2,920-credit Supplies Expense 52.920

Answer 1

Correct answer-------debit supplies expense $2920; credit supplies $2920

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When supplies are purchased it is debited to supplies account and when supplies are used then only supplies are expensed as supplies expense and supplies balance is reduced by the amount of supplies used.

Supplies available minus supplies in hand = Supplies used in a period