The balance in the office supplies account on January 1 was $7,362, the supplies purchased during January were $3,421, and the supplies on hand on January 31 were $2,456. The amount to be used for the appropriate adjusting entry is a.$3,421 b.$2,456 c.$13,239 d.$8,327

d.$8,327

Explanation:

The computation of the amount used in the adjusting entry is shown below:

= Beginning balance of office supplies + supplies purchased - ending balance of office supplies

= $7,362 + $3,421 - $2,456

= $8,327

The adjusting entry is

Supplies expense $8,327

        To Supplies A/c $8,327

(Being the supplies expense is recorded)

For recording this transaction we debited the supplies expense as it increased the expense account and credited the supplies account as it reduced the asset account

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