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30 September, 04:39

Supplies on hand were $ 1 comma 000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. What is the adjusting entry for supplies?

a. Debit supplies expense, $ 550 ; credit supplies, $ 550

b. Debit supplies expense, $ 450 ; credit supplies, $ 450

c. Debit supplies, $ 450 ; credit supplies expense, $ 450

d. Debit supplies, $ 550 ; credit supplies expense, $ 550

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Answers (1)
  1. 30 September, 08:25
    0
    Determination of adjusting entry for Supplies used:

    In the given case it is given those Supplies on hand were $ 1,000 at the start of the year. At the end of the year, it was determined that $ 450 of supplies had been used. It means the adjustment is needed to make for the amount of supplies used $450.

    The adjusting entry for Supplies used shall be as follows:

    Supplies Expense Debit $450

    Supplies Credit $450

    (Being adjustment made for Supplies used)

    Hence the correct answer is:

    b. Debit supplies expense, $ 450; credit supplies, $ 450
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