Ace Corporation purchased office supplies costing $13,000 and debited Office Sup
ID: 2416994 • Letter: A
Question
Ace Corporation purchased office supplies costing $13,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,700 still on hand. The appropriate adjusting journal entry to be made at the end of the period is:
(A)debit Office Supplies Expense, $10,300; credit Office Supplies, $10,300.
(B)debit Office Supplies, $10,300; credit Office Supplies Expense, $10,300.
(C)debit Office Supplies Expense, $2,700; credit Office Supplies, $2,700.
(D)debit Office Supplies, $2,700; credit Office Supplies Expense, $2,700.
(A)debit Office Supplies Expense, $10,300; credit Office Supplies, $10,300.
(B)debit Office Supplies, $10,300; credit Office Supplies Expense, $10,300.
(C)debit Office Supplies Expense, $2,700; credit Office Supplies, $2,700.
(D)debit Office Supplies, $2,700; credit Office Supplies Expense, $2,700.
Explanation / Answer
Solution:
The Journal Entry for the qbove transaction is -
Office Supplies $ 2,700
Office supplies Expense $ 2,700
Therefore, the answer to the above question is (D) debit Office Supplies $ 2,700, credt Office Supplies Expense $ 2,700