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    jharsin's Avatar
    jharsin Posts: 8, Reputation: 1
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    #1

    Oct 13, 2007, 08:04 PM
    Accounting adjusting entry
    The store supplies account had a 360 debit balance at the end of the accounting period before adjustments for supplies used, and an inventory of $80 worth of unused supplies was on hand. Which of the following is a required adjusting entry

    A. debit store supplies expense $80 and credit store supplies $80
    B. Debit store supplies expense $280 and credit store supplies $280
    C.Debit store supplies $80 and credit store supplies expense $80
    D. debit store supplies $280 and credit store supplies expense $280
    newlen5990's Avatar
    newlen5990 Posts: 9, Reputation: 2
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    #2

    Oct 14, 2007, 04:42 AM
    Closing entries are to reduce revenue, expense, and drawing account. Supplies are an asset so the $80 of unused supplies would stay in the account and you would (B)debit the supplies expense $280 and credit the store supplies $280.

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