In Its First Period of Operations, Wallowa Company Purchased Supplies

question 43

Multiple Choice

In its first period of operations, Wallowa Company purchased supplies costing $6,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,800 still on hand. The adjusting journal entry to be made at the end of the period would be

• A) Debit Supplies Expense, $1,800; Credit Supplies, $1,800.
• B) Debit Supplies, $4,200; Credit Supplies Expense, $4,200.
• C) Debit Supplies Expense, $4,200; Credit Supplies, $4,200.
• D) Debit Supplies, $1,800; Credit Supplies Expense, $1,800.