Question

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

Answer 1

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