The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is
A) $5,500.
B) $3,500.
C) $10,700.
D) $6,700.

Question

Quizplus · Accepted Answer

The appropriate adjusting entry for supplies is to adjust the supplies expense for the amount of supplies used during the period. To determine the amount of supplies used, we need to calculate the total supplies available for use during the period (beginning balance + purchases) and subtract the supplies on hand at the end of the period. 
Total supplies available for use: $5,200 + $3,500 = $8,700
Supplies on hand at the end of the period (June 30): $2,000
Supplies used during the period: $8,700 - $2,000 = $6,700
Therefore, the amount to be used for the appropriate adjusting entry is $6,700. So, the correct answer is D.

The Balance in the Supplies Account on June 1 Was