The Unadjusted Trial Balance Columns of the Work Sheet Show

question 81

Multiple Choice

The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns is

• A) $325 debit
• B) $325 credit
• C) $425 debit
• D) $750 debit
• E) $750 credit

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Definitions:

Perpetual System

Perpetual System is an inventory tracking system where inventory and cost of goods sold are updated continuously with each sale or purchase.

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers, often arising from the purchase of goods or services on credit.

Merchandise Inventory

The value of a company's commodities or goods available for sale to customers at any given time.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, not continuously, often used in smaller businesses.