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

Quizplus · Accepted Answer

This adjusting journal entry is made to adjust the supplies inventory to the actual amount used. The debit to Supplies Expense increases the expense for the period, reflecting the cost of supplies used, while the credit to Supplies decreases the asset account, adjusting the balance to reflect the remaining supplies on hand.

The Following Adjusting Journal Entry Does Not Include an Explanation