The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

A)Adjust supplies inventory to actual.
B)Record purchase of supplies.
C)Reduce supplies expense.
D)Record sale of supplies.

Question

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

A)Adjust supplies inventory to actual. 
B)Record purchase of supplies. 
C)Reduce supplies expense. 
D)Record sale of supplies.

Quizplus · Accepted Answer

This adjusting entry is adjusting the supplies inventory to reflect the actual amount on hand. This is necessary because the supplies inventory account may not have been updated to reflect supplies that were used or purchased since the last time it was adjusted.

The Following Adjusting Journal Entry Does Not Include an Explanation