Question

Prior to recording adjusting entries, the office supplies account had a 360 debit balance. A count of the supplies showed 105 of unused supplies remaining. The required adjusting entry is?

1) debit Office Supplies, 105; credit Office Supplies Expense, 105.
2) debit Office Supplies Expense, 105; credit Office Supplies, 105.
3) debit Office Supplies Expense, 255; credit Office Supplies, 255.
4) debit Office Supplies, 255; credit Office Supplies Expense, 255.

Answer 1

The required adjusting entry for this situation is to debit Office Supplies Expense, 105; credit Office Supplies, 105. This is because the remaining unused supplies need to be recognized as an expense, reducing the value of the asset account for office supplies.

Step-by-step explanation:

The required adjusting entry for this situation would be option 2) debit Office Supplies Expense, 105; credit Office Supplies, 105. This is because the remaining unused supplies need to be recognized as an expense, reducing the value of the asset account for office supplies.

required adjusting entry for this situation is to debit Office Supplies Expense, 105; credit Office Supplies, 105. This is because the remaining unused supplies need to be recognized as an expense, reducing the value of the asset account for office supplies.