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Office and Store Supplies Adjusting Entries
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Old 05-06-2008, 11:35 AM   #1 (permalink)
bizark
 
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Default   Office and Store Supplies Adjusting Entries
I'm having trouble figuring out adjusting entries for an assignment.

Basically, I don't understand what a journal entry would look like when it's an adjustment to office supplies and store supplies. Both have a balance less than the last j/e shows. I'm assuming that I credit both accounts but what account would the debit be applied to?
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Old 05-12-2008, 12:22 PM   #2 (permalink)
BostonGuy
 
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Sounds like the adjusting entries are to adjust your prepaid expense account i.e. store/office supplies to reflect the actual quantities on hand. The AJE (adjusting journal entry) is to debit office expense and to credit the store/office supplies prepaid account....
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