The supplies account shows a beginning balance of $3,000. Assume…

 The supplies account shows a beginning balance of $3,000. Assume the supplies account shows an entry as a debit for $5,500 representing supplies purchased during the period and the supplies inventory at year end is $1,700. The adjusting entry involves a:

A) debit to supplies expense for $6,800. 

B) debit to supplies for $1,700.

C) debit to supplies expense for $1,700.

D) debit to supplies for $6,800.

 

Answer : A which I understood

 

My question is here. 

 

1) The balance in the Office Supplies account had a debit balance on January 1, 2022, that equaled the $240 of supplies on hand. During the year, the company purchased $4,200 of supplies that were debited to the Office Supplies Expense account. The proprietor estimates that the cost of supplies remaining on hand on December 31 is $960. What is the required adjusting journal entry on December 31? 

 

Answer: Dr. Office Supplies 720

                        Cr. Office Supplies Expense 720

 

I don’t get why the answer is like this …..

My answer was Dr. Office Supplies 3,480

                                  Cr. Office Supplies Expense 3,480

 

Plz explain the details kindly for me .

Thank you 

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