Correct Answer Prior to recording adjusting entries, the Supplies account has a $450 debit balance. A physical count of supplies shows $125 of unused supplies still available. The required adjusting...

Correct Answer

Prior to recording adjusting entries, the Supplies account has a $450 debit balance. A physical
count of supplies shows $125 of unused supplies still available. The required adjusting entry is:
a. Debit Supplies $125; Credit Supplies Expense $125.
b. Debit Supplies $325; Credit Supplies Expense $325.
c. Debit Supplies Expense $325; Credit Supplies $325.
d. Debit Supplies Expense $325; Credit Supplies $125.
e. Debit Supplies Expense $125; Credit Supplies $125