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 account to reflect the actual amount on hand. Therefore, the best choice is A - Adjust supplies inventory to actual.

The Following Adjusting Journal Entry Does Not Include an Explanation