A company purchased $6,000 worth of supplies in August. On August 31, the balance in the Supplies account was $3,200. The adjusting entry includes

a: Debit to Supplies Expense for $3,200.

b. Credit to Supplies for $2,800.

c. Debit to Supplies for $2,800.

d. Credit to Cash for $2,800.

e. Credit to Supplies Expense for $2,800.

Question

Business

Giles

15 October, 16:24

A company purchased $6,000 worth of supplies in August. On August 31, the balance in the Supplies account was $3,200. The adjusting entry includes

a: Debit to Supplies Expense for $3,200.

b. Credit to Supplies for $2,800.

c. Debit to Supplies for $2,800.

d. Credit to Cash for $2,800.

e. Credit to Supplies Expense for $2,800.

+1

Answers (1)

Know the Answer?

Homer · Answer 1

The answer is C. Debit to Supplies for $2,800

Explanation:

Supplies of worth $6,000 was purchased in Aug.

And on Aug. 31, $3,200 balance was left.

That means $2,800 ($6,000 - $3,200) has been used.

The supplies expense account will he debited for $2,800.

Note that expense increases with debit and credit decreases expense.

Option B, D, E are wrong because the expense increases and not decreases.