Answer:
Debit Supplies expenses for $275
Office supplies for $275
Explanation:
Before the adjusting entry, the following adjustment has to be made first:
Ending balance of supplies that has not been adjusted = $379
Physical ending balance = $104
Amount of used supplies during the period = $379 - $104 = $275
This $275 will be recorded as supplies expense. Therefore, the adjusting entry will be as follows:
Particulars Dr ($) Cr ($)
Supplies expenses 275
Office supplies 275
(To record the supplies expense for the period.)
The above entries will then reduce enduing balance of supplies from $379 to $104.
