Questions: 800 dollars of supplies were purchased at the beginning of the month and the Supplies account was increased. As of the end of the period, 200 dollars of supplies still remain. Which of the following is the correct adjusting entry? Supplies expense would be debited for 600 dollars. Supplies would be credited for 200 dollars. Supplies would be debited for 200 dollars. Supplies expense would be debited for 200 dollars.

The answer is the first one: Supplies expense would be debited for \$600.

Explanation for each option:

1. Supplies expense would be debited for \$600.

   • This is correct. At the beginning of the month, \$800 worth of supplies were purchased. By the end of the period, \$200 worth of supplies remain, meaning \$600 worth of supplies have been used up. Therefore, the Supplies Expense account should be debited for \$600 to reflect the cost of supplies used during the period.

2. Supplies would be credited for \$200.

   • This is incorrect. The Supplies account should be credited for the amount of supplies used, not the amount remaining. The correct credit amount should be \$600, not \$200.

3. Supplies would be debited for \$200.

   • This is incorrect. The Supplies account should be credited, not debited, to decrease the balance by the amount of supplies used. Debiting the Supplies account would incorrectly increase the balance.

4. Supplies expense would be debited for \$200.

   • This is incorrect. The Supplies Expense account should be debited for the amount of supplies used, which is \$600, not \$200.

In summary, the correct adjusting entry is to debit Supplies Expense for \$600 to account for the supplies used during the period.