On-Time Truckers prepares monthly financial statements. On July 1, the Supplies account had a balance of $3,500. During July, additional supplies were purchased for $4,800 and that amount was debited to Supplies Expense. On July 31, a physical count of supplies revealed that there was $2,200 on hand. Prepare the adjusting journal entry that On-Time Truckers should make on July 31.

Question

Business

Mike Harrington

4 June, 21:28

On-Time Truckers prepares monthly financial statements. On July 1, the Supplies account had a balance of $3,500. During July, additional supplies were purchased for $4,800 and that amount was debited to Supplies Expense. On July 31, a physical count of supplies revealed that there was $2,200 on hand. Prepare the adjusting journal entry that On-Time Truckers should make on July 31.

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Josie Rocha · Answer 1

Answer: Sales for the period is $6,100

Explanation:

1. The purchases for the period was posted into a wrong account which is supply expenses.

We have to adjust that entry by:

DR: Purchases. $4,800

CR: Supplies Exp. $4,800

Being wrong posting of purchases for the period.

2. Sales for the period:

Opening inventory $3,500

Purchases. $4,800

Closing Inventory. ($2,200)

Sales. $6,100

DR: Bank $6,100

CR: Sales. $6,100

Being sales for the month of july