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Question 1: The business had purchased office supplies for $1,000 and had recorded the purchase as Asset: Office Supplies. At month end, when preparing the financial statements, an inventory shows that $700 of office supplies is still on hand. The business would record and adjusting entry for this transaction:
Group of answer choices
Option 1: Debit Office supplies expense $700, credit Asset: Office Supplies $700
Option 2: Debit Office supplies expense $300, credit Asset: Office Supplies $300
Option 3: Debit Office supplies $700, Credit Office supplies expense $700
Option 4: Debit Office supplies $300, Credit Office supplies expense $700
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