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View Full Version : How to journalize supplies on hand


browniesar
Apr 18, 2012, 10:21 PM
How would you journalize an adjusting entry for 'supplies on hand at July 31, $600.'

paraclete
Apr 19, 2012, 04:05 AM
Debit prepaid expense, credit?? Expense

pready
Apr 19, 2012, 10:11 AM
An adjusting entry is used to bring your Supplies account balance into agreement with your supplies onhand amount. You get the difference between the two amounts and your adjusting entry will be:
Debit Supplies Expense for the amount of the difference
Credit Supplies for the same amount