A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

A) Debit Supplies Expense $1,250 and credit Supplies $1,250. B) Debit Prepaid Supplies $850 and credit Supplied Expense $850. C) Debit Supplies Expense $1,250 and credit Supplies $2,100. D) Debit Supplies $1,250 and credit Cash $1,250. E) Debit Supplies Expense $850 and credit Supplies $850.

Question

Abraham Richards

Business

30 November, 21:54

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

A) Debit Supplies Expense $1,250 and credit Supplies $1,250. B) Debit Prepaid Supplies $850 and credit Supplied Expense $850. C) Debit Supplies Expense $1,250 and credit Supplies $2,100. D) Debit Supplies $1,250 and credit Cash $1,250. E) Debit Supplies Expense $850 and credit Supplies $850.

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Answers (1)

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Taliyah · Answer 1

E) Debit Supplies Expense $850 and credit Supplies $850.

Explanation:

The journal entry is shown below:

Supplies expense A/c Dr $850

To Supplies A/c $850

(Being supplies account is adjusted)

The supplies expense is computed below

= Supplies balance - supplies on hand

= $2,100 - $1,250

= $850

While recording this given transaction we debited the supplies expense account and credited the supplies account