If a count of office supplies on hand reveal $1,000 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $2,500

If a count of office supplies on hand reveal $1,000 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $2,500, the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:

	A.	Debit Office Supplies on Hand $1,000, Credit Office Supplies Expense $1,000
	B.	Debit Office Supplies on Hand $1,500, Credit Office Supplies Expense $1,500
	C.	Debit Office Supplies Expense $1,500, Credit Office Supplies on Hand $1,500
	D.	none of the above

Expert Solution

Correct Answer is - "C"

Explanation-

Actual Physical count - $1000

Amount Reflecting in Books - $2500

Difference = 2500-1000 = 1500

Since 'office supplies on hand account' has a debit balance we need to credit this account by $1500 and debit "office supplies expense" account by $1500(Since expense account always has a debit balance) to bring the office supplies on hand up to date at year end.

ekkarill92 answered 2 years ago

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Question

If a count of office supplies on hand reveal $1,000 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $2,500

Solutions

Expert Solution

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