Question

A total of 3650 in supplies was purchased during the year. at the end of the year $880 of the supplies were left. the adjusting entry needed at the end of the year is:

Answer 1

Accounts Title and Explanation	Debit	Credit
Cost of Goods sold	2,770
Inventory	880
Purchase		3,650
(To record cost of goods sold and inventory)
At the end , remaining inventory are recognized as expense and inventory which are either sold or used in production are transferred to cost of goods sold account and which is an item of income statement