Based on this information, what would be recorded in the adjusting entry at the end of year two?

An organization’s account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand.

Based on this information, what would be recorded in the adjusting entry at the end of year two?
A . A debit to office supplies on hand for S2.500
B . A debit to office supplies on hand for $11,500
C . A debit to office supplies on hand for S20.500
D . A debit to office supplies on hand for S42.500

View Answer

Answer: A