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 journal entry is adjusting the supplies inventory account to reflect the actual amount of supplies on hand, indicating that the previous balance was not accurate.

The Following Adjusting Journal Entry Does Not Include an Explanation