The balance in the office supplies account on May 1 was $6,380, supplies purchased during June were $4,740, and the supplies on hand at May 31 were $2,360.The amount to be used for the appropriate adjusting entry is:
A) $8,740.
B) $4,740.
C) $8,760.
D) $13,480.

Question

Quizplus · Accepted Answer

To calculate the amount for the adjusting entry, we need to subtract the supplies on hand at the end of the period from the total amount of supplies purchased during the period. Therefore,
Supplies purchased during June = $4,740
Supplies on hand at May 31 = $2,360
Supplies used during June = $4,740 - $2,360 = $2,380
So, the appropriate adjusting entry would be to debit the supplies expense account for $2,380 and credit the office supplies account for $2,380. Therefore, the total balance in the office supplies account after the adjusting entry would be $6,380 + $4,740 - $2,380 = $8,760. Hence, the correct answer is C) $8,760.

The Balance in the Office Supplies Account on May 1