A Physical Count of Supplies on Hand at the End

question 20

Multiple Choice

A physical count of supplies on hand at the end of May for Masters,Inc.indicated $1,250 of supplies on hand.The general ledger balance before any adjustment is $2,100.What is the adjusting entry for office supplies that should be recorded on May 31?

• A)Debit Supplies Expense $1,250 and credit Supplies $1,250.
• B)Debit Prepaid Supplies $850 and credit Supplies Expense $850.
• C)Debit Supplies Expense $1,250 and credit Supplies $2,100.
• D)Debit Supplies $1,250 and credit Cash $1,250.
• E)Debit Supplies Expense $850 and credit Supplies $850.