At the beginning of the month, supplies were $ 6 comma 000. During the month, $ 7 comma 000 of supplies were purchased. At month's end, 2 comma 000 of supplies are still on hand. What is the bullet adjusting entry? bullet ending balance in the Supplies account? First, prepare the adjusting journal entry for Supplies. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts and Explanations Debit Credit The ending balance in the Supplies account was $.

Question

Business

Angel Lam

10 February, 03:53

At the beginning of the month, supplies were $ 6 comma 000. During the month, $ 7 comma 000 of supplies were purchased. At month's end, 2 comma 000 of supplies are still on hand. What is the bullet adjusting entry? bullet ending balance in the Supplies account? First, prepare the adjusting journal entry for Supplies. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts and Explanations Debit Credit The ending balance in the Supplies account was $.

+1

Answers (1)

Know the Answer?

Trace Walter · Answer 1

Adjusting Entry

Cost of goods sold (Dr.) $11,000

Beginning Inventory (Cr.) $6,000

Purchases (Cr.) $5,000

Closing Entry

Ending Inventory (Dr.) $2,000

Income Summary (Cr.) $2,000

Explanation:

The adjusting entry is made by debiting cost of goods sold account which reflects the amount of inventory sold during the month and the entry is credited by beginning inventory of $6,000 and the remaining amount which is $5,000 is credited in purchases account.

The closing entry is made by debiting the ending inventory by the amount of $2,000 and Income Summary account is credited by the same amount to close the inventory account.