Red Industries began operations on April 11th, 2022. Red purchased $2,100 of supplies, and a physical count showed that $400 of supplies were on hand at year-end. Which is the appropriate journal entry at year-end

Question

Business

Roberto Bradshaw

30 December, 16:16

Red Industries began operations on April 11th, 2022. Red purchased $2,100 of supplies, and a physical count showed that $400 of supplies were on hand at year-end. Which is the appropriate journal entry at year-end

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Rey Gill · Answer 1

The journal entry is shown below:

Supplies expense A/c Dr $1,700

To Supplies A/c $1,700

(Being supplies account is adjusted)

The supplies expense is computed below

= Purchase value of supplies - supplies on hand at year end

= $2,100 - $400

= $1,700

For recording, this given transaction we debited the supplies expense account as the remaining balance is transferred to supplies expense and credited the supplies account