The balance in the Supplies account Before making the necessary adjustments is $1,400. A physical count and costing reveals that there are $675 of Supplies on hand on December 31, 2020. The adjusting entry to record the cost of the supplies used up should include:   A. Debiting Supplies expense for $675 and Crediting Cash for $675 B. Debiting Supplies expense for $725 and Crediting Supplies for $725 C. Debiting Supplies for $725 and Crediting Accounts payable for $725 D. Debiting Supplies for $1,400 and Crediting Cash for $1,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The balance in the Supplies account Before making the necessary adjustments is $1,400. A physical count and costing reveals that there are $675 of Supplies on hand on December 31, 2020. The adjusting entry to record the cost of the supplies used up should include:

 

  • A. Debiting Supplies expense for $675 and Crediting Cash for $675
  • B. Debiting Supplies expense for $725 and Crediting Supplies for $725
  • C. Debiting Supplies for $725 and Crediting Accounts payable for $725
  • D. Debiting Supplies for $1,400 and Crediting Cash for $1,400
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