Question

In: Accounting

During their first year, Antonio and Associates bought $7,500 worth of supplies for their CPA firm....

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

Solutions

Expert Solution

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

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