PE 3-3A Adjustment for prepaid expense

The supplies account had a beginning balance of $2,400 and was debited for $3,975 for
supplies purchased during the year. Journalize the adjusting entry required at the end of
the year assuming the amount of supplies on hand is $1,375.

Answer:
Supplies Expense.......................................................... 5,000
                            Supplies.................................................................... 5,000
                                      Supplies used ($2,400 + $3,975 – $1,375).