A company, Eventful Events, started with $2,000 of supplies on January 1, 2018. During the year, they purchased $25,000 of supplies with cash. On December 31, 2018, they had $3,500 of supplies on hand. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $23,500. B. Debit Supplies Expense and credit Supplies for $25,500. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $22,500. E. Debit Supplies Expense and credit Supplies for $26,500.
A company, Eventful Events, started with $2,000 of supplies on January 1, 2018. During the year, they purchased $25,000 of supplies with cash. On December 31, 2018, they had $3,500 of supplies on hand. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $23,500. B. Debit Supplies Expense and credit Supplies for $25,500. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $22,500. E. Debit Supplies Expense and credit Supplies for $26,500.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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Transcribed Image Text:A company, Eventful Events, started with $2,000 of supplies
on January 1, 2018. During the year, they purchased $25,000
of supplies with cash. On December 31, 2018, they had $3,500
of supplies on hand. What entry will they report to record the
supplies used for the year?
A. Debit Supplies Expense and credit Supplies for $23,500.
B. Debit Supplies Expense and credit Supplies for $25,500.
C. None of these answers are correct.
D. Debit Supplies Expense and credit Supplies for $22,500.
E. Debit Supplies Expense and credit Supplies for $26,500.
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