The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750. The Adjustments columns shows a credit of $425 for supplies used during the period. The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:
A) $425 debit.
B) $750 debit.
C) $425 credit.
D) $325 credit.
E) $325 debit.

Question

Quizplus · Accepted Answer

The unadjusted balance of Store Supplies is $750. After adjusting for $425 of supplies used, the remaining balance is $750 - $425 = $325. This remaining balance is a debit, as it represents the supplies still on hand.

The Unadjusted Trial Balance Columns of a Company's Work Sheet