Question

Office supplies on hand at January 1 of the current year totaled $450. Office supplies purchased and debited to Office Supplies during the year amounted to $690. The year-end count showed $275 of supplies on hand

OFFICE Supplies expense DEBIT OR CREDIT HOW MUCH
office supplies debt or credit how much

Answer 1

The office supplies account can be debited or credited depending on the transaction. In this scenario, the final balance in the office supplies account is a debit of $865.

Step-by-step explanation:

Office supplies can be either debited or credited depending on the transaction. When office supplies are purchased, the amount is debited to the Office Supplies account to reflect an increase in assets. On the other hand, when office supplies are used, the amount is credited to the Office Supplies account to reflect a decrease in assets.

In this scenario, the office supplies purchased during the year amount to $690, which is debited to the Office Supplies account. The year-end count shows $275 of supplies on hand. Therefore, the balance in the Office Supplies account should be calculated as follows:

• Opening balance: $450
• Purchases during the year (debit): $690
• Supplies on hand at year-end (credit): -$275
• Final balance: $450 + $690 - $275 = $865 (debit)

So, the final balance in the Office Supplies account is a debit of $865.