Prior to recording adjusting entries, the Office Supplies account had a $370 debit balance. A physical count of the supplies showed $111 of unused supplies available. The required adjusting entry is:

The readjusting entry will now be to  Debit Office Supplies expense   $259  and Credit Office Supplies  $259  

Explanation:

Unadjusted ending balance of Supplies = $370

Actual supplies of unused supplies = $111

Amount of supplies were used during the period ( Supplies Expense)= $370 -$111 = $259

The readjusting entry will now be

Account and explanation              Debit            Credit

Office Supplies expense               $259

Office Supplies                                                     $259

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