The balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of supplies on hand is $500. What account should be debited in the journal (1) and for what amount to record the adjusting entry for supplies based on this information?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of supplies on hand is $500. What account should be debited in the journal (1) and for what amount to record the adjusting entry for supplies based on this information?

                                      JOURNAL                                                     Page     25

date

description

p.ref.

debit

CREDIT

 

Adjusting Entries

     

12/31

(1)

 

?

 

 

  (2)

 

 

?

 

Group of answer choices
Supplies $500
Supplies Expense $1,500
Supplies Expense $2, 500
Supplies  $2,500
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