Supplies are recorded as assets when purchased. Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies
A) still on hand
B) purchased
C) used
D) required for the next accounting period

Question

Quizplus · Accepted Answer

The credit to Supplies in the adjusting entry reflects the amount of supplies used during the period, as the entry adjusts the Supplies account to represent the current amount of supplies on hand by recognizing the expense of the supplies that have been consumed.

Supplies Are Recorded as Assets When Purchased