At the end of the accounting period, the following should occur with supplies.
A) No action is required.
B) An adjusting entry should be made to expense the used supplies at the end of the period.
C) A physical inventory should be taken.
D) Both b and

Question

Quizplus · Accepted Answer

At the end of the accounting period, it is necessary to make an adjusting entry to record the supplies that have been used up. This adjusting entry will decrease the amount of supplies on hand and increase the amount of supplies expense. However, to determine the accurate amounts of supplies consumed, a physical inventory should be taken to count the remaining supplies on hand. Therefore, both options (B) and (C) are required to ensure accurate accounting for supplies.

At the End of the Accounting Period, the Following Should