Question

If Regent Tax Services' office supplies account balance on March 1 was $850, the company purchased $450 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,050 unused, what is the amount of the adjusting entry for office supplies on March 31?

Answer 1

Answer:

The adjusting entry for office supplies on March 31 is:

                                                                       Dr             Cr

Supplies Expense                                         250

       Office Supplies                                                     250

Step-by-step explanation:

850+450-1,050 = $250

Beginning Supplies                                       $ 850

Add:Purchase during the month                         $450

Total Supplies Available                              $ 1,300

Less: Ending Supplies in hand                      $ 1,050

Supplies Expenses for March                          $ 250