Help During its first three months of aperations ABC campany

Help

During its first three months of aperations, ABC campany bought office supplies for $2,200 and recorded at the time of purchase. Beginning inventory at the end of the first quarter, amount to S800. Ending inventory of supplies was $400. To prepare financial statement for the first quarter, the company must record which of the following accounting adjustments? Supplies axpense increase means a minus(to net income. A. A Incrsasa Suppliss expense by $2,200 and decrease Supplies inventory by 2,200 A Increase Supplies expense account by 5800 and decresse Supplies inventory by $800 A Increase Supplies inventory by $800 and decrease Supplies expense account by $800 A Decreasa Supplies invantory by $2,600 and increase Supplies expense account 2.600 O E. None of the above

Solution

Increase Supplies inventory by $800 and decrease Supplies expense account by $800 Option C is correct