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Prior to recording adjusting entries, the Office Supplies account had a $392 debit balance. A physical count of the supplies showed $96 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $96 and credit Supplies Expense $296. Debit Office Supplies Expense $296 and credit Office Supplies $296. Debit Office Supplies $296 and credit Office Supplies Expense $296. Debit Office Supplies $96 and credit Office Supplies Expense $96 Debit Office Supplies Expense $96 and credit Office Supplies $96.

Prior to recording adjusting entries, the Office Supplies account had a $392 debit balance. A physical count of the supplies showed $96 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $96 and credit Supplies Expense $296. Debit Office Supplies Expense $296 and credit Office Supplies $296. Debit Office Supplies $296 and credit Office Supplies Expense $296. Debit Office Supplies $96 and credit Office Supplies Expense $96 Debit Office Supplies Expense $96 and credit Office Supplies $96.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 5QY: The Supplies account has a 1,400 balance. A physical inventory is taken at the end of the fiscal...
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Prior to recording adjusting entries, the Office Supplies account had a $392 debit balance. A physical count of the supplies showed $96 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $96 and credit Supplies Expense $296. Debit Office Supplies Expense $296 and credit Office Supplies $296. Debit Office Supplies $296 and credit Office Supplies Expense $296. Debit Office Supplies $96 and credit Office Supplies Expense $96 Debit Office Supplies Expense $96 and credit Office Supplies $96.
Transcribed Image Text:Prior to recording adjusting entries, the Office Supplies account had a $392 debit balance. A physical count of the supplies showed $96 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $96 and credit Supplies Expense $296. Debit Office Supplies Expense $296 and credit Office Supplies $296. Debit Office Supplies $296 and credit Office Supplies Expense $296. Debit Office Supplies $96 and credit Office Supplies Expense $96 Debit Office Supplies Expense $96 and credit Office Supplies $96.
Expert Solution
Step 1: Introduction

The office supplies are specifically debited from the office or store supplies account and credited to the cash account in the beginning in order to be recorded as assets. The expense for supplies utilized during the accounting period is recorded at the end of the period as an adjustment. Without this corrective entry, the income statement will overstate earnings and the balance sheet will reflect supplies that don't exist.

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