Question

Sebadoah is a barber who does his own accounting for his shop. Sebadoah purchased $1,500 of supplies in January and his inventory at the end of January shows $300 of supplies remaining. What adjusting entry should Sebadoah make on January 31?

Answer 1

Supplies expense..............Dr $1,200

Supplies $1,200

Step-by-step explanation:

Supplies purchased is $1,500

Ending inventory of supplies = $300

Inventory used during the period = 1,500 - 300

= $1,200

The journal entry passed to record supplies used:

Particulars Debit Credit

Supplies expense $1,200

Supplies $1,200

(To record supplies used during

the period)