Question & Answer: 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…..

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.

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)
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