Greese Company purchased office supplies costing $7000 and increase Supplies for the full amount.At the end of the accounting period a physical count of office supplies revealed $2500 still on hand.The appropriate adjustment to be made at the end of the period would be:

Question

Quizplus · Accepted Answer

The supplies used during the period are $7000 - $2500 = $4500. Therefore, Supplies Expense should be increased by $4500, and Supplies should be decreased by $4500 to reflect the supplies used.

Greese Company Purchased Office Supplies Costing $7000 and Increase Supplies