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At the beginning of December, Global Corporation had $2,000 in supplies on hand. During the month supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $800. What is the appropriate month-end adjusting entry?

A. Debit Cash $4,200, credit Supplies $4,200.
B. Debit Supplies $4,200, credit Supplies Expense $4,200.
C. Debit Supplies Expense $4,200, credit Supplies $4,200.
D. Debit Cash $800, credit Supplies $800.

Respuesta :

Answer:

C. Debit Supplies Expense $4,200, credit Supplies $4,200.

Explanation:

The adjusting entry is shown below:

Supplies expense A/c Dr $4,200

            To supplies A/c $4,200

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance + purchase made - supplies on hand

= $2,000 + $3,000 - $800

= $5,000 - $800

= $4,200

We simply debited the supply expense account and credited the supplies account

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