The Office Supplies Inventory Account of Tan Traders Shows a Balance

Multiple Choice

The office supplies inventory account of Tan Traders shows a balance of $1600 on 31 December 2014. The adjusting entry to record office supplies of $550 issued to staff in the 12 months up to 31 December 2014 is which of the following?

A) Debit office supplies inventory $550; credit office supplies expense $550
B) Debit office supplies inventory $1050; credit office supplies expense $1050
C) Debit office supplies expense $550; credit office supplies inventory $550
D) Debit office supplies expense $1600; credit office supplies inventory $1600