Ask Question
29 December, 20:11

Prior to recording adjusting entries, the Office Supplies account had a $363 debit balance. A physical count of the supplies showed $107 of unused supplies available. The required adjusting entry is:

+4
Answers (1)
  1. 29 December, 20:55
    0
    The adjusting entry is shown below:

    Office supplies expense A/c Dr $257

    To Office supplies $257

    (Being adjusted entry recorded in respect of office supplies)

    Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:

    = Office supplies debit balance - unused office supplies

    = $363 - $107

    = $257

    Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Prior to recording adjusting entries, the Office Supplies account had a $363 debit balance. A physical count of the supplies showed $107 of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers