When an employer makes an end-of-period adjusting entry with a debit to supplies expense, the usual credit entry is made to:
A)Accounts payable.
B)Supplies.
C)Cash.
D)Retained earnings.

Question

Quizplus · Accepted Answer

Since the adjusting entry involves a debit to supplies expense, which reduces the balance of supplies, the corresponding credit entry must be made to the supplies account to reflect the amount of supplies consumed during the period.

When an Employer Makes an End-Of-Period Adjusting Entry with a Debit