Prior to recording adjusting entries, the Office Supplies account had a $430 deb

Question

Prior to recording adjusting entries, the Office Supplies account had a $430 debit balance. A physical count of the supplies showed $115 of unused supplies available. The required adjusting entry is:

a. Debit Office Supplies Expense $315 and credit Office Supplies $315.

b. Debit Office Supplies Expense $115 and credit Office Supplies $115.

c. Debit Office Supplies $315 and credit Supplies Expense $315.

d. Debit Office Supplies $115 and credit Office Supplies Expense $315.

e. Debit Office Supplies $115 and credit Office Supplies Expense $115.

Explain pls

Explanation / Answer

a. Debit Office Supplies Expense $315 and credit Office Supplies $315

Office suppy is an Asset account. Hene it has Debit Balance. As Physical count shows only $115 of supplies, we pass a consumption entry by debiting Office supply exp with $315 so that Office supply has correct debit balance of (430-315) = 115.

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