Reference no: EM132526424

Question 1: Quirk Company purchased office supplies costing $6,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,400 decrease in office supplies on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Option 1: Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.

Option 2: Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600.

Option 3: Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600.

Option 4: Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.