The adjusting entry to account for the use of supplies consists of
A) a debit to Supplies Expense and a credit to Supplies.
B) a debit to Supplies and a credit to Supplies Expense.
C) a debit to Supplies and a credit to Accumulated Depreciation.
D) a debit to Accumulated Depreciation and a credit to Supplies.

Question

Quizplus · Accepted Answer

When supplies are used, the cost of these supplies is recorded as an expense. Therefore, the adjusting entry should include a debit to Supplies Expense for the cost of the supplies used and a credit to Supplies to reduce the balance of the asset account.

The Adjusting Entry to Account for the Use of Supplies