Federer Corp. had $2,400 of supplies on hand at January 1. During the year, supplies with a

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Question:

Federer Corp. had $2,400 of supplies on hand at January 1. During the year, supplies with a cost of $4,000 were purchased. At December 31, the actual supplies on hand amount to $2,000. After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts.

Supplies Supplies Expense

a. $ 4,400 $ 2,000

b. $ 2,000 $ 4,400

c. $ 2,400 $ 4,000

d. $ 4,000 $ 2,400