The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is
cant figure out how to do it. please help. Thanks
Answer should be 5,700
To determine the appropriate adjusting entry for office supplies, you need to calculate the amount used during the month of June. Here's how you can do it:
Step 1: Start with the balance in the office supplies account on June 1: $5,200.
Step 2: Add any additional supplies purchased during June: $2,500.
Step 3: Subtract the supplies on hand at June 30: $2,000.
Step 4: The result will give you the amount of supplies used during June.
Let's calculate it:
$5,200 (Balance on June 1)
+ $2,500 (Supplies purchased during June)
- $2,000 (Supplies on hand at June 30)
_______________________________
= $5,700
The amount used for the appropriate adjusting entry is $5,700.
This adjusting entry will decrease the office supplies account by $5,700 to reflect the supplies actually used during the month. The debit portion of the entry will be $5,700 to decrease the supplies account, and the credit portion will be to an appropriate expense account to match the decrease in supplies (e.g., Office Supplies Expense or Supplies Expense). The specific accounts used may vary depending on the accounting system or company's preferences.