Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Self-Test Questions: 6

Answer

c

Work Step by Step

"Supplies" is an asset and normally has a debit balance. "Supplies expense" normally has a credit balance. If the beginning balance of "supplies" was \$1350 and \$600, then \$750 of supplies were used and are therefore an expense. "Supplies" has decreased, so it will be credited \$750, while "supplies expense" is credited the same amount.
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