Prior to recording adjusting entries, the Office Supplies account had a $379 debit balance. A physical count of the supplies showed $104 of unused supplies available. The required adjusting entry is:

Debit Supplies expenses for $275

Office supplies for $275

Explanation:

Before the adjusting entry, the following adjustment has to be made first:

Ending balance of supplies that has not been adjusted = $379

Physical ending balance = $104

Amount of used supplies during the period = $379 - $104 = $275

This $275 will be recorded as supplies expense. Therefore, the adjusting entry will be as follows:

Particulars                                      Dr ($)                Cr ($)  

Supplies expenses                        275

Office supplies                                                         275

(To record the supplies expense for the period.)              

The above entries will then reduce enduing balance of supplies from $379 to $104.

answer; monopolistic competition;