The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | l | l | }
\hline \text { Supplies Expense } & 730 & \
\hline \text { Supplies } & & 730 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline & & \
\hline
\end{array}$$
A) Adjust supplies inventory to actual.
B) Record purchase of supplies.
C) Reduce supplies expense.
D) Record sale of supplies.

Question

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. $$\begin{array} { | c | l | l | } 
\hline \text { Supplies Expense } & 730 & \
\hline \text { Supplies } & & 730 \
\hline ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? & & \
\hline & & \
\hline
\end{array}$$
A) Adjust supplies inventory to actual.
B) Record purchase of supplies.
C) Reduce supplies expense.
D) Record sale of supplies.

Quizplus · Accepted Answer

The entry debits Supplies Expense and credits Supplies, indicating that supplies have been used up and need to be expensed, which adjusts the supplies inventory to its actual amount.

The Following Adjusting Journal Entry Does Not Include an Explanation