Shockey Electric Company purchased office supplies costing $4,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Question

Quizplus · Accepted Answer

The correct adjusting entry would be to debit Office Supplies Expense for the amount of supplies used ($4,000 - $1,600 = $2,400) and credit Office Supplies for the same amount. This will reduce the balance in Office Supplies and recognize the expense for the supplies used during the period. Therefore, choice C is the best answer.

Shockey Electric Company Purchased Office Supplies Costing $4,000 and Debited