The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $1,500. The amount to be used for the appropriate adjusting entry is:

Question

Quizplus · Accepted Answer

To calculate the amount for the adjusting entry, we need to determine the actual supplies used during June.

Supplies used during June = Supplies purchased during June - Supplies on hand at June 30 
Supplies used during June = $2,500 - $1,500 
Supplies used during June = $1,000

Therefore, the adjusting entry would be to decrease the office supplies account by $1,000, resulting in a new balance of $6,200.

Option (D) is the correct answer.

The Balance in the Office Supplies Account on June 1