In: Accounting
During their first year, Antonio and Associates bought $7,500 worth of supplies for their CPA firm. When purchased, the supplies were debited to Office Supplies and credited to Accounts Payable. If $2,250 worth of office supplies is still on hand at month-end, what is the proper adjusting entry? Group of answer choices
A. A debit to Office Supplies Expenses of 5,250 and a credit to Office Supplies of 5,250
B. A debit to Office Supplies Expenses of 2,250 and a credit to Office Supplies of 2,250.
C. A debit to Office Supplies of 5,250 and a credit to Office Supplies Expense of 5,250
D. A debit to Office Supplies of 2,250 and a credit to Office Supplies Expense of 2,250
Use of office expenses during the month | ||||
=$7500 - 2250 | ||||
=$5250 | ||||
Date | Account Title | Debit | Credit | |
Office Supplies Expenses | $ 5,250 | |||
Office Supplies | $ 5,250 | |||
(being office supplies expenses recorded) | ||||
Correct Option : A | ||||