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 on hand. This could be due to physical inventory counts or other factors that have caused the recorded balance to be inaccurate.

The Following Adjusting Journal Entry Does Not Include an Explanation