At the beginning of December, Global Corporation had $2,100 in supplies on hand. During the month, supplies purchased amounted to $3,500, but by the end of the month the supplies balance was only $2,800. What is the appropriate month-end adjusting entry?

Question

Business

Adrien Dudley

12 August, 08:24

At the beginning of December, Global Corporation had $2,100 in supplies on hand. During the month, supplies purchased amounted to $3,500, but by the end of the month the supplies balance was only $2,800. What is the appropriate month-end adjusting entry?

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Answers (2)

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Dean Oneal · Answer 1

Debit Supplies expense (p/l) $2,800

Credit Supplies Inventory $2,800

Explanation:

Supplies at hand = $2,100

Purchases = $3,500

Closing balance = $2,800

Amount used up = $2,100 + $3,500 - $2,800

= $2,800

Appropriate month-end adjusting entry is

Debit Supplies expense (p/l) $2,800

Credit Supplies Inventory $2,800

Being entries to write off supplies used during the month.

Valeria Rice · Answer 2

DR Supplies expense $2,800

CR Supplies $2,800

Explanation:

Opening Balance $2,100

Add Purchases $3,500

Total $5,600

Closing Balance $2,800

To determine usage for the month

=Total supplies - Closing Balance of Supplies

= $5,600 - $2,800

= $2,800

Usage for the month = $2,800

DR Supplies expense $2,800

CR Supplies $2,800