When a business makes an end-of-period adjusting entry with a debit to supplies expense, the usual credit entry is made to:
A) Accounts payable.
B) Supplies.
C) Cash.
D) Retained earnings.

Question

Quizplus · Accepted Answer

When a business makes an end-of-period adjusting entry with a debit to supplies expense, it means that the company has used up a portion of the supplies they have purchased, and therefore the supplies account needs to be reduced. The usual credit entry to make to reduce the supplies account is Supplies.

When a Business Makes an End-Of-Period Adjusting Entry with a Debit