The office supplies inventory account of Tan Traders shows a balance of $1600 on 31 December 2014. The adjusting entry to record office supplies of $550 issued to staff in the 12 months up to 31 December 2014 is which of the following?

Question

Quizplus · Accepted Answer

The correct adjusting entry to record the issuance of $550 in office supplies is to debit the office supplies expense account and credit the office supplies inventory account for $550. This reflects the expense of the supplies used and reduces the inventory value accordingly.

The Office Supplies Inventory Account of Tan Traders Shows a Balance