Question

If Regent Tax Services' office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31?

Answer 1

The amount of adjusting entry for the supplies on March 31 would be $825.

Step-by-step explanation:

At the start of the month, the amount of balance in Regent tax services office supplies account is $1400, and during the month Regent tax service also purchased supplies worth of $675. At the month's end the the unused supplies were $1250, so the amount for adjusting entry can be calculated as -

= $1400 + $675 - $1250

= $2075 -$1250

= $825

Therefore the amount of adjusting entry would be $825.