When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required:
A.
$\begin{array}{llcc}
\text { Dr. Supplies } \
\text { Cr. Accounts payable } \
\end{array}$

B.
$\begin{array}{llcc}
\text { Dr. Supplies } \
\text {Cr. Supplies expense } \
\end{array}$

C.
$\begin{array}{llcc}
\text { Dr. Supplies expense } \
\text { Cr. Supplies } \
\end{array}$

D. $\begin{array}{llcc}
\text { No adjustment will probably be required. } \
\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D

Question

When a firm purchases supplies for use in its business, and the cost of the supplies purchased is recorded as an asset, the following adjustment to recognize the cost of supplies used will probably be required: 
A.
$\begin{array}{llcc}
  \text { Dr. Supplies  } \
  \text { Cr. Accounts payable } \
\end{array}$

B.
$\begin{array}{llcc}
  \text {  Dr. Supplies } \
  \text {Cr. Supplies expense  } \
\end{array}$

C.
$\begin{array}{llcc}
  \text {  Dr. Supplies expense } \
  \text { Cr. Supplies } \
\end{array}$

D. $\begin{array}{llcc}
  \text { No adjustment will probably be required. } \
\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D

Quizplus · Accepted Answer

The adjustment required is to debit Supplies Expense and credit Supplies to recognize the cost of supplies used during the period.

When a Firm Purchases Supplies for Use in Its Business Dr. Supplies Cr. Accounts payable \begin{array}{llcc} \text { Dr. Supplies } \\ \text { Cr. Accounts payable } \\\end{array} Dr. Supplies Cr. Accounts payable ​

When a Firm Purchases Supplies for Use in Its Business $\begin{array}{llcc} \text { Dr. Supplies } \\ \text { Cr. Accounts payable } \\\end{array}$