Question

The Supplies Expense account was debited $1,240 by the Sanford Company for office supplies purchased during the first year of operations. At year-end, the office supplies on hand were counted and the cost of the on-hand items was $880. The appropriate adjusting entry would:

Answer 1

Answer:

The Decrease in expenses $360

Explanation:

Since the supplies expense is debited by $1,240 for office supplies purchased

and the office supplies on hand is $880

So, the remaining office supplies left is

= Supplies expenses debited for Office supplies purchased -  office supplies on hand

= $1,240 - $880

= $360

This $360 represent that there is a decrease in expenses