Answer:
Explanation:
Opening stock Mar 1 2013 $500
Purchases in the month. $1,200
Used stocks in the month. $1,400
Closing stock at 31st Mar $ 300
Inventory Account. Dr. Cr
Opening stock. 500
Purchases. 1,200
Used stock. 1,400
Closing bal c/d. 300
Total. 1,700. 1,700
Balance b/f. 300
Answer:
Debit supplies expense $1,400
Credit Supplies account $1,400
Explanation:
The movement in supplies is as a result of purchases and sales during the period. While purchases increases the balance, sales reduces it.
On purchase of $1,200,
Debit Supplies account $1,200
Credit Bank/Cash account $1,200
On use of $1,400
Debit supplies expense $1,400
Credit Supplies account $1,400
This will ensure that the balance in the supplies account is $300 considering the opening balance, purchases and sales.
