If Moore advertising company trail banance is $6,700 and supplies is $0, and there is $1700 supplies on hand?

Question

If Moore Advertising Company's trail balance at Dec. 31 show adverting supplies $6,700 adn Adverising Expense $0. On Dec. 31, there are $1,700 of supplies on hand. Prepare the adjusting entry at Dec. 31, and using T accounts, enter the balance in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

Answer 1

Adjusting entry:
Advertising Expense (debit): $5,000 ($6,700-1,700)
Advertising Supplies (credit): $5,000 ($6,700-1,700)

Adjusted 31 December balances:
Advertising expense: $5,000
Advertising supplies $1,700