If a count of office supplies on hand reveal $100 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350,the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:
A)Debit Office Supplies on Hand $100,Credit Office Supplies Expense $100
B)Debit Office Supplies on Hand $150,Credit Office Supplies Expense $150
C)Debit Office Supplies Expense $100,Credit Office Supplies on Hand $100
D)Debit Office Supplies Expense $250,Credit Office Supplies on Hand $250

Question

Quizplus · Accepted Answer

The balance of $350 in the Office Supplies on Hand account indicates that $350 worth of supplies were initially recorded. Since only $100 worth of supplies remain unused, $250 worth of supplies have been used. Therefore, the adjusting entry should debit Office Supplies Expense and credit Office Supplies on Hand for $250 to reflect the used supplies.

If a Count of Office Supplies on Hand Reveal $100