What effect will this adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | }
\hline \text { Supplies Expense } & 760 & \
\hline \text { Supplies } & & 760 \
\hline
\end{array}$$
A) increase income
B) decrease net income
C) decrease expenses
D) increase assets

Question

What effect will this adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } 
\hline \text { Supplies Expense } & 760 & \
\hline \text { Supplies } & & 760 \
\hline
\end{array}$$
A) increase income
B) decrease net income
C) decrease expenses
D) increase assets

Quizplus · Accepted Answer

This adjusting journal entry records the use of supplies by debiting Supplies Expense and crediting Supplies, which increases expenses and therefore decreases net income.

What Effect Will This Adjusting Journal Entry Have on the Accounting