a company started the year with $300 of supplies. during the year, the company purchased an additional…

a company started the year with $300 of supplies. during the year, the company purchased an additional $1,400 of supplies. there were $500 of supplies on hand at the end of the year. an adjusting entry prepared at the end of the accounting period includes a:\n\na. debit to supplies expense for $1,200.\nb. debit to supplies for $500.\nc. debit to supplies for $1,100.\nd. debit to supplies expense for $200.

a company started the year with $300 of supplies. during the year, the company purchased an additional $1,400 of supplies. there were $500 of supplies on hand at the end of the year. an adjusting entry prepared at the end of the accounting period includes a:\n\na. debit to supplies expense for $1,200.\nb. debit to supplies for $500.\nc. debit to supplies for $1,100.\nd. debit to supplies expense for $200.

Answer

Explanation:

Step1: Calculate the total supplies available

The company started with $300 of supplies and purchased an additional $1,400. So the total supplies available is (300 + 1400=$1700).

Step2: Calculate the supplies used (supplies expense)

The supplies on - hand at the end of the year is $500. Using the formula (Supplies\ Expense=Total\ Supplies\ Available - Supplies\ on - Hand), we have (1700 - 500=$1200). When recording the adjusting entry, we debit Supplies Expense (because expenses increase with a debit) for the amount of supplies used.

Answer:

A. debit to Supplies Expense for $1,200.