The unadjusted trial balance lists Supplies with a $678 balance.After taking an inventory of supplies,it was found that $390 were on hand.The adjustment to Supplies Expense is a:
A)$390 debit.
B)$390 credit.
C)$288 debit.
D)$288 credit.

Question

Quizplus · Accepted Answer

Since there were $390 worth of supplies on hand after inventory, we need to subtract that from the $678 balance listed in the trial balance to find out how much was used/consumed.

$678 - $390 = $288

This means we need to increase the Supplies Expense account by $288 to adjust for the supplies that were used, so the entry would be a debit to Supplies Expense for $288.

The Unadjusted Trial Balance Lists Supplies with a $678 Balance