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

contestada

Respuesta :

andromache andromache · Answer 1 · 2020-02-06T06:24:23+01:00

Answer:

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.