If Bojana Tax Services' office supplies account balance on March 1 was $1,750, the company purchased $500 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,350 unused, what is the amount of the adjusting entry for office supplies on March 31?

Question

Steven

Business

26 March, 13:56

If Bojana Tax Services' office supplies account balance on March 1 was $1,750, the company purchased $500 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,350 unused, what is the amount of the adjusting entry for office supplies on March 31?

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Ainsley Casey · Answer 1

The adjusting entry which is to be recorded or passed is shown below:

Explanation:

The adjusting entry which is to be passed for the office supplies on March 31, is as follows:

Supplies expense A/c ... Dr $900

Supplies A/c ... Cr $900

The accounts of supplies expense is debited against the supplies account which is credited.

Supplies used during the year = Beginning office supplies + Purchases during the month - Ending supplies in hand

= $1,750 + $500 - $1,350

= $2,250 - $1,350

= $900