Ask Question
26 May, 06:25

Happy Maids has an opening balance in its supplies account of $1,600 and purchases $1,800 of supplies during the year. A year-end physical count shows $1,200 in supplies inventory. Which is the appropriate journal entry at year end?

+3
Answers (1)
  1. 26 May, 08:13
    0
    Debit supplies expense $2,200

    Credit office supplies $2,200

    Explanation:

    The beginning balance of $1,600 plus the purchases of $1,800 makes an available office supplies balance for the period in the amount of $3,400. A year-end physical count of $1,200 constitutes the remaining supplies balance at the period after they used up the $2,200 portion ($3,400 - $1,200). The appropriate journal entry at the year end is to recognize the expense portion of the supplies. Therefore, we have to debit supplies expense and credit office supplies in the amount of $2,200.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Happy Maids has an opening balance in its supplies account of $1,600 and purchases $1,800 of supplies during the year. A year-end physical ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers