Bee-In-The-Bonnet Company purchased office supplies costing $6,000 and debited O

Question

Bee-In-The-Bonnet Company purchased office supplies costing $6,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be



A. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.
B. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
C. Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600.
D. Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600.

Explanation / Answer

c. debit office supplies expense 3600, credit office supplies 3600 crediting office supplies will reduce the office supplies account by 3600, so that it is equal to the 2400 still on hand, and since 3600 office supplies were used up, that is the correct amount to expense.

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