Patty's Party Planners had $1,500 of supplies on hand on January 1 2017. During the year, they purchased $30,850 of supplies with cash. On December 31, 2017, they had $4,220 of supplies on hand. Patty's Party Planners has the calendar year as its fiscal year and makes adjusting entries on a yearly basis. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $4,200. B. Debit Supplies and credit Cash for $30,850. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $26,630. E. Debit Supplies Expense and credit Supplies for $28,130.
Patty's Party Planners had $1,500 of supplies on hand on January 1 2017. During the year, they purchased $30,850 of supplies with cash. On December 31, 2017, they had $4,220 of supplies on hand. Patty's Party Planners has the calendar year as its fiscal year and makes adjusting entries on a yearly basis. What entry will they report to record the supplies used for the year? A. Debit Supplies Expense and credit Supplies for $4,200. B. Debit Supplies and credit Cash for $30,850. C. None of these answers are correct. D. Debit Supplies Expense and credit Supplies for $26,630. E. Debit Supplies Expense and credit Supplies for $28,130.
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:Patty's Party Planners had $1,500 of supplies on hand on
January 1 2017. During the year, they purchased $30,850
of supplies with cash. On December 31, 2017, they had
$4,220 of supplies on hand. Patty's Party Planners has the
calendar year as its fiscal year and makes adjusting entries
on a yearly basis. What entry will they report to record the
supplies used for the year?
A. Debit Supplies Expense and credit Supplies for $4,200.
B. Debit Supplies and credit Cash for $30,850.
C. None of these answers are correct.
D. Debit Supplies Expense and credit Supplies for $26,630.
E. Debit Supplies Expense and credit Supplies for $28,130.
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