Question

At March 1,2020, Candy inc. Had supplies on hand of $500. During the month Candy purchased supplies of $1200 and used supplies of $500. The March 31 adjusting journal entry shoud include what ?

Answer 1

Answer: The March 31 adjusting journal entry shoud include $1200

Explanation: Given that the

Supplies on hand = $500

Candy purchased supplies of $1200 and used supplies of $500

The unused supplies will be:

1200 - 500 = 700 dollars

The March 31 adjusting journal entry shoud include the addition of the supplies on hand and the unused supplies. That is,

500 + 700 = 1200 dollars