The adjusting entry for supplies used requires a to Supplies and a to Supplies Expense.
Question
The adjusting entry for supplies used requires a to Supplies and a to Supplies Expense.
Solution
The adjusting entry for supplies used requires a debit to Supplies Expense and a credit to Supplies.
Here are the steps:
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Identify the amount of supplies used during the period. This is done by subtracting the ending balance of supplies from the beginning balance.
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Debit (increase) the Supplies Expense account by the amount of supplies used. This reflects the expense incurred from using the supplies during the period.
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Credit (decrease) the Supplies account by the same amount. This reduces the asset account to reflect the decrease in supplies on hand.
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The ________ specifies the point at which inventory is needed:
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