Reference no: EM133000933

Problem 1: A bookkeeper debited an asset account on January 1 for $ 3,000 for 3 months of supplies. As of January 31, assuming supplies are used consistently over the 3 months, what is the entry that needs to be made to properly reflect supplies used in January?

Option 1: Debit to Supplies Expenses $ 2,000 and Credit to Supplies $ 2,000

Option 2: Debit to Supplies $ 1,000 and Credit to expenses for supplies $ 1,000

Option 3: Credit to Supplies $ 1,000 and credit to expenses of supplies $ 1,000

Option 4: Debit to Supplies $ 2,000 and credit to expenses for supplies $ 2,000

Option 5: Credit another liability account for $ 1,500.