Crystal's Hair Studio showed office supplies available of $1,400. A count of the supplies left on hand as of June 30 was $1,100. The adjusting journal entry is

Question

Quizplus · Accepted Answer

The adjusting entry should decrease the Office Supplies asset account to reflect the supplies that have been used up or depleted, and increase the Office Supplies Expense account to record the expense of using those supplies. Since the supplies used up were $300 ($1,400 - $1,100), the entry should be Office Supplies Expense $300 and Office Supplies $300. Therefore, the correct choice is D.

Crystal's Hair Studio Showed Office Supplies Available of $1,400