High School

Thank you for visiting Prior to recording adjusting entries the Supplies account has a 450 debit balance A physical count of supplies shows 125 of unused supplies still available. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!

Prior to recording adjusting entries, the Supplies account has a $450 debit balance. A physical count of supplies shows $125 of unused supplies still available. The required adjusting entry is:

A. Debit Supplies $125; Credit Supplies Expense $125.
B. Debit Supplies $325; Credit Supplies Expense $325.
C. Debit Supplies Expense $325; Credit Supplies $325.
D. Debit Supplies Expense $325; Credit Supplies $125.
E. Debit Supplies Expense $125; Credit Supplies $125.

Answer :

Final answer:

The correct adjusting entry for the supplies scenario is to debit Supplies Expense by $325 and credit the Supplies account by $325, showing that $325 of supplies were used, and leaving a balance of $125 of unused supplies.

Explanation:

When adjusting for supplies at the end of an accounting period, the goal is to recognize the expense associated with the amount of supplies that have been used up and adjust the supplies account for the remaining balance. Given the scenario where the Supplies account has a $450 debit balance and a physical count shows that there are still $125 worth of supplies left, the correct adjusting entry would record the amount of supplies used.

The entry would be:

  • Debit Supplies Expense $325; Credit Supplies $325.

This reflects the consumption of supplies worth $325 during the period, which reduces the assets (Supplies) and increases the expenses (Supplies Expense). The new balance in the Supplies account would now be the $125 of unused supplies as determined by the physical count.

Learn more about Adjusting Entries here:

https://brainly.com/question/28867174

#SPJ11

Thank you for reading the article Prior to recording adjusting entries the Supplies account has a 450 debit balance A physical count of supplies shows 125 of unused supplies still available. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!

Rewritten by : Jeany

Other Questions