Question

Prior to recording adjusting entries, the Office Supplies account had a $379 debit balance. A physical count of the supplies showed $104 of unused supplies available. The required adjusting entry is: 18 Multiple Choice polnts X 01:50:34 Debit Office Supplies Expense $104 and credit Office Supplies $104. Debit Office Supplies $104 and credit Office Supplies Expense $104 Debit Office Supplies $104 and credit Supplies Expense $275. Debit Office Supplies Expense $275 and credit Office Supplies $275. Debit Office Supplies $275 and credit Office Supplies Expense $275.

Answer 1

Answer

• Unadjusted ending balance of Supplies = $ 379
• Actual supplies ending balance existing physically = $ 104
• This means that $ 275 of supplies were used during the period. [$ 379 – 104]
• This $ 275 Supplies used is recorded as ‘Supplies Expense’
• Correct Option: Option #4
  [Debit] Office Supplies expense $ 275
  [Credit] Office Supplies $ 275 [thereby, making the balance go from $ 379 debit to $ 104 debit]