The balance in the supplies account, before adjustment at the end of the year, is $2,397. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,127.

The Journal entry is as follows:

Supplies expense A/c Dr. $1,270

To Supplies $1,270

Working notes:

Supplies expense

= Balance before adjustment - Ending balance

= $2,397 - $1,127

= $1,270

$1,270 worth of supplies has been used during the year, so it is considered as supplies expense.

And balance in supplies account before adjustment will reduce by $1,270 leaving ending balance of $1,127.