The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns is:
A)$325 credit.
B)$750 debit.
C)$425 debit.
D)$325 debit.
E)$750 credit.

Question

Quizplus · Accepted Answer

The $425 of supplies used during the period must be subtracted from the Unadjusted Trial Balance amount of $750, leaving a balance of $325. Since the supplies were already purchased and no additional purchases were made during the period, the balance of $325 is a debit balance, meaning the supplies were used and the asset account is reduced. Therefore, the answer is D.

The Unadjusted Trial Balance Columns of the Work Sheet Show