Accounting for inventories (purchases method)

Assume that a town purchases $4,000 of supplies on account toward the end of the year. A year-end audit reveals that $1,500 of the inventories remain unused. Prepare the journal entry for the purchase of inventories and the year-end adjusting entry assuming that the purchases method is used.

General Journal Description Debit Credit

Supplies purchase:

Year-end adjusting entry: