During a company's first year, the asset account, Office Supplies, was debited for $2,300 for the purchases of supplies. At year end, office supplies on hand were counted and determined to be $825. The proper adjusting entry crediting supplies will
A)increase liabilities and decrease assets by $1,475.
B)decrease assets and increase expenses by $825.
C)increase expenses and decrease assets by $1,475.
D)have no effect on net income or the accounting equation.

Question

Quizplus · Accepted Answer

$2,300 supplies were available for use, and $825 of supplies remained on han

During a Company's First Year, the Asset Account, Office Supplies