Question

Which Entry Line Below, would be included in the Adjusting Journal Entry at Month End to record the Following Information; Supplies Purchased During the Month for Cash = $1,000 Supplies Counted at the End of the Month = $300 Group of answer choices

Credit to Supplies for $1,000

Credit to Cash for $700

Credit to Supplies Expense for $700

Debit to Supplies for $300

None of These Choices

Debit to Cash $700

Debit to Supplies Expense for $300

Answer 1

• Supplies purchased during the month for cash = $1,000
  • 
• Supply at the end of the month = $300
• Supply consumed, i.e. Supply expense for the month = Supply at the beginning + Purchases - Supply at the end = $0 + $1,000 - $300 = $700 (assuming there are no supplies at the beginning)
• Adjusting entry at the month-end:
  • 
• Correct option: None of These Choices