The entry to adjust for the cost of supplies used during the accounting period is:<\/p>\n
a. Supplies Expense, debit; Supplies, credit.<\/p>\n
b. James Smith, Capital, debit; Supplies, credit.<\/p>\n
c. Accounts Payable, debit; Supplies, credit.<\/p>\n
d. Supplies, debit; credit James Smith, Capital.<\/p>\n
Answer: a. Supplies Expense, debit; Supplies, credit.<\/span><\/span><\/strong><\/p>\n In order to recognise an expense on supplies consumed in a certain accounting period, the right entry is to Supplies Expense by debiting and Supplies by crediting. Supplies is an asset account that indicate computations of the supplies consumption in the business and the account cost depict the supplies cost in the business. When supplies are consumed, Supply, which is the asset account is reduced the quantity in the balance by crediting it. The offsetting debit is recorded in Supplies Expense account which is a nominal account that is also known as an expense account specifically used in the general ledger for recording the value of the supplies that had been consumed in the business. This expense is then related to the revenues generated in that fiscal period, thus: Other choices are incorrect based on the following excuses: The application of supplies does not impact on James Smith\u2019s Capital account; Accounts Payable or the other usual accounts.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":" The entry to adjust for the cost of supplies used during the accounting period is: a. Supplies Expense, debit; Supplies, credit. b. James Smith, Capital, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n