Adjusting Entries Practice Problem Supplies Inventory Adjustment Solution

 

Selected Account balances as of September 30, 2000:
		Cleaning Supplies Inventory - debit           $   600
		Cleaning Supplies Expense  - debit              6,735
Required:	Write the adjusting journal entry for the month ended September 30 based on the following information:
	Based on a physical inventory, cleaning supplies on hand at September 30 were valued at $2,735.
Solution:	Purpose: To adjust the cleaning supplies inventory based on a physical inventory of supplies.
	Accounts:	Balance Sheet:        Cleaning Supplies Inventory
		Income statement:   Cleaning Supplies Expense
	Calculation:	Desired balance in Cleaning Supplies Inventory   $2,735 - Current blance in Cleaning Supplies Inventory      (   600)
		Reduction to the Cleaning Supplies Expense       $ 2,135

	Date	Account Titles	Debits	Credits
	Sept. 30	Cleaning Supplies Inventory	$2,135
		Cleaning Supplies Expense		2,135
		To adjust cleaning supplies inventory account.

 

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