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    damendolare's Avatar
    damendolare Posts: 6, Reputation: 1
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    #1

    Apr 22, 2016, 12:27 PM
    Trial Balance Question
    Searches related to At year end, a physical count of office supplies reveals that $7000 of supplies were used up but no adjusting entry was made to account for this.If this error is found, it will most likely be because
    a. the trial balance would be out of balance by $7000
    b. the trial balance would be out of balance by $14,000
    c. the trial balance would be out of balance by $3,500
    d. none of the above


    I answered A. However was marked wrong and am trying to understand why?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Apr 22, 2016, 03:02 PM
    Because a physical count does not affect a trial balance, it is to be expected that Office Supplies would be expensed or inventoried on purchase

    Accounting requires you pay specific attention to detail
    damendolare's Avatar
    damendolare Posts: 6, Reputation: 1
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    #3

    Apr 24, 2016, 06:27 PM
    So your saying "d" None of the above should be the answer. Sorry I always like to go back on my exams and redo the ones I got incorrect for my own knowledge.Not sure why Im hitting a wall on this one.Thanks again.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #4

    Apr 25, 2016, 06:16 PM
    I explained why you are "hitting the wall" you have to examine the detail of any question, the operative words here were physical count

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