Which of the following is the correct adjusting journal entry to record supplies used as supplies expense at the end of the accounting period?

• A. Debit Supplies Expense; Credit Supplies
• B. Debit Supplies; Credit Supplies Expense
• C. Debit Supplies Expense; Credit Cash
• D. Debit Cash; Credit Supplies Expense

Answer: (A)

Verified step by step guidance

1. Understand the concept: Adjusting journal entries are made at the end of the accounting period to update accounts for revenues earned and expenses incurred during the period. Supplies expense is recorded when supplies are used, reducing the Supplies account and increasing the Supplies Expense account.
2. Identify the accounts involved: Supplies Expense is an expense account, and Supplies is an asset account. When supplies are used, the value of the Supplies asset decreases, and the Supplies Expense increases.
3. Determine the correct journal entry: To record supplies used, you need to debit Supplies Expense (to increase the expense) and credit Supplies (to decrease the asset). This reflects the consumption of supplies during the period.
4. Eliminate incorrect options: Review the provided options and eliminate entries that involve Cash, as cash is not part of this transaction. Supplies Expense and Supplies are the only relevant accounts.
5. Select the correct entry: The correct adjusting journal entry is 'Debit Supplies Expense; Credit Supplies,' as this properly reflects the use of supplies during the accounting period.