At the beginning of the fiscal year,office supplies inventory amounted to $600.During the year,office supplies amounting to $8,800 were purchased.This amount was debited to office supplies expense.An inventory of office supplies at the end of the fiscal year showed $400 of supplies remaining.The beginning of the year balance is still reflected in the office supplies inventory account.What is the required amount of the adjustment to the office supplies expense account?
A) $9,000 debit
B) $200 debit
C) $8,400 credit
D) $8,800 credit

Question

Quizplus · Accepted Answer

The amount of office supplies used during the year can be calculated as follows: beginning inventory + purchases - ending inventory = $600 + $8,800 - $400 = $9,000. Therefore, the amount of the adjustment to the office supplies expense account is $9,000 - $8,800 = $200, which is a debit because the expense account needs to be increased to reflect the cost of supplies used.

At the Beginning of the Fiscal Year,office Supplies Inventory Amounted