Question

Adjustment for Prepaid Expense The supplies account had a beginning balance of $3,920 and was debited for $2,160 for supplies purchased during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of supplies on hand is $1,640. th

Answer 1

Beginning balance of supplies Add: Supplies purchased Total Supplies available Less: Ending balance of supplies Supplies expense during the year $ $ $ $ $ 3,920 2,160 6,080 1,640 4,440 Credit Journal Entry Supplies Expense Supplies Debit 4,440 $ $ 4,440 This adjusting entry is to record supplies expense incurred during the year.