a company started the year with $600 of supplies. during the year, the company purchased an additional…

a company started the year with $600 of supplies. during the year, the company purchased an additional $1,100 of supplies. there were $800 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 $900.\nb. debit to supplies for $500.\nc. debit to supplies for $800.\nd. debit to supplies expense for $200.

a company started the year with $600 of supplies. during the year, the company purchased an additional $1,100 of supplies. there were $800 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 $900.\nb. debit to supplies for $500.\nc. debit to supplies for $800.\nd. debit to supplies expense for $200.

Answer

Explanation:

Step1: Calculate the total supplies available

The company started with $600 of supplies and purchased an additional $1,100. So the total supplies available is $600 + $1,100 = $1,700.

Step2: Calculate the supplies expense

The supplies on hand at the end of the year is $800. Using the formula Supplies Expense = Total Supplies Available - Supplies on Hand. So Supplies Expense = $1,700 - $800 = $900.

Since supplies expense is an expense account, and when we record an expense, we debit the expense account.

Answer:

A. debit to Supplies Expense for $900.