During a company's first year, the asset account, Office Supplies, was debited for $2,300 for the purchases of supplies. At year-end, office supplies on hand were counted and determined to be $825. The proper adjusting entry crediting supplies and debiting supplies expense will A. increase expenses and decrease assets by $1,475. B. decrease assets and increase expenses by $825. C. increase expenses and increase assets by $1,475. D. have no effect on net income or the accounting equation

A. increase expenses and decrease assets by $1,475.

Explanation:

Beginning office supplies (Asset)           $2,300

Ending office supplies (Asset)                    $825

Office supplies used (Asset decrease) = $1,475

Therefore, the journal entry is as follows:

Supplies expense (Debit) = $1,475

Office supplies  (Credit)    = $1,475

In that case, an expense increases (supplies expense) due to the decrease of an asset (Office supplies). All the other options are wrong apart from option A.

the answer is d

explanation:

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