An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two, the organization recorded an expense of
$45,000 for purchasing office supplies. At the end of year two, a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?
At the end of year one, the balance for office supplies on hand was $9,000. During year two, the organization recorded an expense of $45,000 for purchasing additional supplies. By the end of year two, a physical count determined that $11,500 worth of supplies remained. The change in inventory would result from the difference between initial and final supplies. Thus, $11,500 - $9,000 = $2,500 should be adjusted. Therefore, the correct adjusting entry at the end of year two is a debit to office supplies on hand for $2,500.
the ans is A la, hello
its A, variance is 2500
Gotta be A
isnt the answer supposed to be A? Please relook at all your answers to accounting questions.
how do you calculate 2,500?
Answer is D. 45000 + 9000 = X + 11500, X = 42500
pls explain