Question

Question 20 2 pts On January 1, Great Designs Company had a debit balance of $1,450 in the office supplies account. During the month, Great Designs purchased $115 and $160 of office supplies and journalized them to the asset account upon purchasing. On January 31, an inspection of the office supplies cabinet shows that only $350 of office supplies remains. Prepare the January 31 adjusting entry for office supplies.

Answer 1

Answer;

Adjusting Journal entry

Date	Account Details and Explanation	Debit ($)	Credit ($)
31 January	Supplies Expense	1,375
	Office Supplies		1,375
	To record office supplies expenses incurred during the month

EXPLANATION:

1 January	Office supplies	$1,450
	Purchase during the month of January : ($115+$160)	275
	Total	1,725
31 January	Office supplies	350
	Office supplies expenses during the month of January ($1,725 - $350)	1,375

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