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    hjimerson's Avatar
    hjimerson Posts: 1, Reputation: 1
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    #1

    Mar 17, 2012, 10:36 AM
    ?Adjusting entry
    Prior to recording adjusting entries on December 31, a company's Store Supplies account had an $880 debit balance. A physical count of the supplies showed $325 of unused supplies available as of December 31. Prepare the required adjusting entry.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 18, 2012, 09:42 AM
    You need to bring your account balance into agreement with your physical balance. So the adjusting entry will be:
    Debit Supplies Expense for the difference between $800 and $325
    Credit Supplies for the same amount

    This entry accounts for the amount of supplies used during the accounting period and brings your supplies account balance into agreement with your physical amount onhand.

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