At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

An organization’s account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies.

At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?
A . A debit to office supplies on hand for S2.500
B . A debit to office supplies on hand for $11,500
C . A debit to office supplies on hand for S20.500
D . A debit to office supplies on hand for S42.500

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Answer: A