Reese Company purchased office supplies costing $4,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Debit Office Supplies Expense, $1,600; Credit Office Supplies, $1,600.
Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.
Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
Debit Office Supplies, $1,600; Credit Office Supplies Expense, $1,600

Hi, Laugh123!

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Thanks!

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Comments on this post
Laugh123 disagrees: Does not help me at all.

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Hey, Laugh123!

You didn't ask for any help. You just expected people to come up with the answers for you. That's not how this site works.

What I gave you, and I tried to be polite, is the way to get people to help you here.

Thanks!

You have to do an ajusting entry to get down to your ending inventory amount.

So it is difference between your beginning inventory + purchases in the period and the ending inventory

You will debit the Expense and credit the Asset