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Question - The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. What the required adjusting entry at the end of year 3?
Supplies Expense for $43,500.
Supplies for $6,500.
Supplies for $14,500.
Supplies Expense for $6,500.
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