Question
Patty's Party Planners had $1,500 of supplies on hand on January 1 2017. During the year, they purchased $30,850 of supplies with cash. On December
Patty's Party Planners had $1,500 of supplies on hand on January 1 2017. During the year, they purchased $30,850 of supplies with cash. On December 31, 2017, they had $4,220 of supplies on hand. Patty's Party Planners has the calendar year as its fiscal year and makes adjusting entries on a yearly basis. What entry will they report to record the supplies used for the year?
Debit Supplies Expense and credit Supplies for $4,200.
Debit Supplies and credit Cash for $30,850.
None of these answers are correct.
Debit Supplies Expense and credit Supplies for $26,630.
Debit Supplies Expense and credit Supplies for $28,130.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started