Printing Supplies had a beginning balance of $4,000. During the month, purchases of printing supplies totaling $3,000 were debited to the Printing Supplies account.
If $2,000 worth of printing supplies is still on hand at month-end, what is the proper adjusting entry?
A) Printing Supplies Expense 2,000
Printing Supplies 2,000
B) Printing Supplies 5,000
Printing Supplies Expense 5,000
C) Printing Supplies Expense 5,000
Printing Supplies 5,000
D) Printing Supplies 2,000
Printing Supplies Expense 2,000
E) None of the above

Question

Quizplus · Accepted Answer

The beginning balance plus purchases equals $7,000. With $2,000 on hand, $5,000 has been used, so the adjusting entry is to debit Printing Supplies Expense and credit Printing Supplies for $5,000.

Printing Supplies Had a Beginning Balance of $4,000