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Logan Corp. purchases supplies on account and appropriately records the transaction in an asset account. The adjusting journal entry at year-end when accounting for supplies used will require a (Select all that apply.)

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Answer:

  • Debit to supplies expense
  • Credit to supplies

Explanation:

Supplies to be used in a period will be considered an expenses so Logan should debit the Supplies Expense account to show that as an expense, the supplies used have increased.

As Logan Corp. bought the supplies on account, they should record this as a credit in the supplies account to show that it is a liability account that is still owed.

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