Question

he company has a Supplies account balance of $200 on January 1, 2015. During 2015, it purchased $1,500 of supplies. As of December 31, 2015, a supplies inventory shows $500 of supplies available (that is, left on hand).Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.DateAccount TitleDebitCreditDec. 31

Answer 1

Step-by-step explanation:

On December 31, 2015

The adjusting entry is shown below:

Supplies expense A/c Dr $1,200

To supplies A/c $1,200

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies opening balance + purchase of supplies - supplies on hand at the closing date

= $200 + $1,500 - $500

= $1,200