[anniekoz74]

What are the adjusting entries. (I looked in my texted but I couldn't find any examples even remotely close to this question.)


The Office Supplies account had a $700 debit balance on December 31, 2007; and $3480 of office supplies were used during the year. The December 31,2008, physical count showed $298 of supplies avaailable.

[CaptainForest]

Start of year we had 700 in supplies
We used up 3480
Ended with 298

Therefore, we must have purchased 3078 supplies during the year

So when we bought the supplies, the JE would have been

To make the adjustment for what was used…
Dr. Supplies Expense 3480
Cr. Office Supplies 3480