Question

If Regent Tax Services' office supplies account balance on March 1 was $850, the company purchased $450 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,050 unused, what is the amount of the adjusting entry for office supplies on March 31?

Answer 1

The adjusting entry for office supplies on March 31 is:

Dr Cr

Supplies Expense 250

Office Supplies 250

Explanation:

850+450-1,050 = $250

Beginning Supplies $ 850

Add:Purchase during the month $450

Total Supplies Available $ 1,300

Less: Ending Supplies in hand $ 1,050

Supplies Expenses for March $ 250