Question

the balance in the supplies account, before adjustment at the end of the year is 2750. the inventory of supplies at the end of the year was determined to be 600. the estimated depreciation on equipment at the end of the year is 1600. journalize the adjusting entries required at the end of the year to recognize
A. supplies used during the year and
B. depreciation expense for the year.​

Answer 1

Answer and Explanation:

The adjusting entries are shown below:

a. Supplies Expense Dr ($2,750 - $600) $2,150

         To Supplies $2,150

(being supplies expense is recorded)

Here supplies expense is debited as it increased the expense and credited the supplies as it decreased the assets

b. Depreciation expense $1,600

              To Accumulated depreciation $1,600

(being depreciation expense is recorded)

Here depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets