Chan Inc.purchased office supplies costing $3,000 and debited Office Supplies for the full amount.At the end of the accounting period, a physical count of office supplies revealed $1,750 still on hand.The appropriate adjusting journal entry to be made at the end of the period would be

Question

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The adjusting entry should reflect the amount of supplies used, which is the difference between the initial purchase ($3,000) and the remaining supplies ($1,750), resulting in $1,250 used. Thus, debit Office Supplies Expense and credit Office Supplies for $1,250.

Chan Incpurchased Office Supplies Costing $3,000 and Debited Office Supplies for for the Full