On January 1st, Great Designs Company had a debit balance of $1,450 in the Office Supplies account. During the month, Great Designs purchased $115 and $160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only $350 of Office Supplies remains in the locker.

1. Prepare the January 31st adjusting entry for Office Supplies.

Question

Business

Monserrat Sheppard

7 July, 18:32

On January 1st, Great Designs Company had a debit balance of $1,450 in the Office Supplies account. During the month, Great Designs purchased $115 and $160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only $350 of Office Supplies remains in the locker.

1. Prepare the January 31st adjusting entry for Office Supplies.

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Answers (1)

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Blaine Joyce · Answer 1

Debit write off account (p/l) $1,375

Credit Office Supplies account $1,375

Being entries to write off Office Supplies for the month of January

Explanation:

On January 1st

Office Supplies account balance = $1,450

Purchases = $115 + $160

= $275

Balance in Office Supplies account balance = $1,450 + $275

= $1,725

On January 31st, an inspection of the office supplies cabinet shows that only $350 of Office Supplies remains in the locker.

Amount to be written off the Office Supplies account

= $1,725 - $350

= $1,375

To adjust this,

Debit write off account (p/l) $1,375

Credit Office Supplies account $1,375

Being entries to write off Office Supplies for the month of January.