Asked by Kalin Williams on May 31, 2024
Verified
The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. Supplies Expense 730 Supplies 730????????????????\begin{array} { | c | r | r | } \hline \text { Supplies Expense } & 730 & \\\hline \text { Supplies } & & 730 \\\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \\\hline\end{array} Supplies Expense Supplies ????????????????730730
A) Adjust supplies inventory to actual.
B) Record purchase of supplies.
C) Reduce supplies expense.
D) Record sale of supplies.
Adjusting Journal Entry
A type of journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.
Supplies Expense
Costs associated with consumable items used during the operation of a business, such as office supplies or manufacturing materials.
Inventory
Materials and goods a business holds for the ultimate goal of resale or processing in the manufacturing process.
- Determine the effect of adjusting entries on the financial statements, specifically the income statement and balance sheet.
- Understand the procedure and consequences of making adjusting entries within the accounting cycle.
Verified Answer
MU
Mounika Uppala
Jun 01, 2024
Final Answer :
A
Explanation :
This adjusting journal entry is made to adjust the supplies inventory to the actual amount used. The debit to Supplies Expense increases the expense for the period, reflecting the cost of supplies used, while the credit to Supplies decreases the asset account, adjusting the balance to reflect the remaining supplies on hand.
Learning Objectives
- Determine the effect of adjusting entries on the financial statements, specifically the income statement and balance sheet.
- Understand the procedure and consequences of making adjusting entries within the accounting cycle.