Shasa Company made several purchases of office supplies totaling $3,310 during i

Question

Shasa Company made several purchases of office supplies totaling $3,310 during its first year of operations and recorded all purchases by debiting the asset account Office Supplies. At December 31, the amount of unused supplies on hand was determined by count to amount to $1,460. The proper adjusting entry would be: Debit Office Supplies $1,460 and credit Office Supplies Expense $1,460. Debit Office Supplies Expense $1,850, and credit Office Supplies $1,850. Debit Office Supplies Expense $1,460 and credit Office Supplies $1,460 Debit Accounts Payable $3,310 and credit Office Supplies $3,310. Nohe bf the above.

Explanation / Answer

Correct answer is option B.

Office supplies Expenses Dr $1850

To Office Supplies $1850

Amount to be transferred to Income statement would be used portion of supplies ie 3310-1460=1850

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