If Regent Tax Services' office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31?

Question

Quizplus · Accepted Answer

The adjusting entry for office supplies would be the difference between the total supplies purchased and the supplies on hand at the end of the period.

Total supplies purchased = $1,400 + $675 = $2,075 
Supplies on hand at the end of March = $1,250

Adjusting entry = Total supplies purchased – Supplies on hand at the end of March 
Adjusting entry = $2,075 - $1,250 = $825

Therefore, the amount of the adjusting entry for office supplies on March 31 is $825, which is option C.

If Regent Tax Services' Office Supplies Account Balance on March