Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

a. Debit Office Supplies $105 and credit Office Supplies Expense $105.

b. Debit Office Supplies Expense $105 and credit Office Supplies $105.

c. Debit Office Supplies Expense $254 and credit Office Supplies $254.

d. Debit Office Supplies $254 and credit Office Supplies Expense $254.

e. Debit Office Supplies $105 and credit Supplies Expense $254.

Question

Business

Montana

1 February, 09:05

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

a. Debit Office Supplies $105 and credit Office Supplies Expense $105.

b. Debit Office Supplies Expense $105 and credit Office Supplies $105.

c. Debit Office Supplies Expense $254 and credit Office Supplies $254.

d. Debit Office Supplies $254 and credit Office Supplies Expense $254.

e. Debit Office Supplies $105 and credit Supplies Expense $254.

+1

Answers (1)

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Kiley Costa · Answer 1

c. Debit Office Supplies Expense $254 and credit Office Supplies $254.

Explanation:

The adjusting entry is as follows

Office Supplies expense A/c Dr $254

To Office Supplies A/c $254

(Being supplies account is adjusted)

The supplies expense is computed by

= Debit balance of office supplies - unused supplies available

= $359 - $105

= $254

The $254 is to be reported as an office supplies expense.