A company purchased $6,000 worth of supplies in August. On August 31, the balance in the Supplies account was $3,200. The adjusting entry includes

a: Debit to Supplies Expense for $3,200.
b. Credit to Supplies for $2,800.
c. Debit to Supplies for $2,800.
d. Credit to Cash for $2,800.
e. Credit to Supplies Expense for $2,800.

The answer is C. Debit to Supplies for $2,800

Explanation:

Supplies of worth $6,000 was purchased in Aug.

And on Aug. 31, $3,200 balance was left.

That means $2,800($6,000 - $3,200) has been used.

The supplies expense account will he debited for $2,800.

Note that expense increases with debit and credit decreases expense.

Option B, D, E are wrong because the expense increases and not decreases.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o