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