If Bojana 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 is calculated by taking the supplies on hand at the end of the month and subtracting it from the sum of the beginning supplies balance and the supplies purchased during the month:

Beginning balance: $1,400 
Supplies purchased: $675 
Total supplies available: $2,075

Supplies on hand at end of March: $1,250

Adjusting entry: $2,075 - $1,250 = $825 (debit to Supplies Expense and credit to Supplies)

Therefore, the correct answer is B.

If Bojana Tax Services' Office Supplies Account Balance on March