22. a companys asset account marketing supplies began the year with a balance of $15,000. during the year…

22. a companys asset account marketing supplies began the year with a balance of $15,000. during the year the company purchased an additional $260,000 of marketing supplies which were added to this account. at the end of the year, the company had $20,000 of marketing supplies on hand. which of the following should be included in the year - end adjusting entry? select... a credit of $5,000 to marketing supplies expense a credit of $265,000 to marketing supplies a credit of $255,000 to marketing supplies subscriptions x $24) and recorded the entire amount in deferred (unearned) subscription

22. a companys asset account marketing supplies began the year with a balance of $15,000. during the year the company purchased an additional $260,000 of marketing supplies which were added to this account. at the end of the year, the company had $20,000 of marketing supplies on hand. which of the following should be included in the year - end adjusting entry? select... a credit of $5,000 to marketing supplies expense a credit of $265,000 to marketing supplies a credit of $255,000 to marketing supplies subscriptions x $24) and recorded the entire amount in deferred (unearned) subscription

Answer

Explanation:

Step1: Calculate total supplies available

The beginning balance of marketing supplies is $15,000 and additional purchases are $260,000. So the total supplies available is $15,000 + $260,000=$275,000$.

Step2: Calculate supplies used

The ending balance of supplies is $20,000. Supplies used = Total supplies available - Ending balance of supplies. So supplies used is $275,000 - $20,000 = $255,000$.

Step3: Determine adjusting - entry

To record the used supplies as an expense, we need to credit the Marketing Supplies account (an asset account) for the amount of supplies used. So we credit Marketing Supplies for $255,000$.

Answer:

A credit of $255,000 to Marketing Supplies