The supplies account had a beginning balance of $3,375 and was debited for $6,450 for supplies purchased during the year. Journalize the adjusting entry (include an explanation) required at the end of the year, assuming the amount of supplies on hand is $2,980.
Answer:
Supplies Expense 6,845
Supplies 6,845
Supplies used ($3,375 + $6,450 – $2,980).