If Scrap,common to All Jobs,is Returned to the Storeroom and the Time

question 25

Multiple Choice

If scrap,common to all jobs,is returned to the storeroom and the time between the scrap being inventoried and its disposal is quite lengthy,the journal entry is:

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Definitions:

Supplies Account

An account in the general ledger that records the amount spent on supplies that are used in the operation of a business.

General Journal

A ledger where all financial transactions of a business are initially recorded using double-entry bookkeeping.

Purchases Journal

A financial journal used to record all purchases of goods and services on credit.

Return Supplies

Returned goods or materials that were previously purchased, which can reduce the payable amount or be exchanged for credit.