5. A company has a Supplies account at the end of the year that shows a balance of $10,000 and a Supplies Expense account with a 0 balance. A count of the actual supplies on hand revealed a value of $2,000. Record the adjusting journal entry required at year end.
Expert Answer
Adjusting Journal entries at year end | ||||
Transaction | Account Titles | Debit | Credit | |
a | Supplies Expense | $8,000 | ||
Supplies | $8,000 | |||
(to record the usage of supplies during the year) |