1)

If the January 1 balance in the Supplies account for a company was $560, the company purchased an additional $420 of supplies during the month, and a physical count of the supplies indicates that $255 of supplies is on hand at the end of January, the adjusting entry on January 31 for supplies should be:

Supplies	420
Cash		420

Supplies Expense	725
Supplies		725

Supplies Expense	980
Cash		980

Supplies Expense	305
Supplies		305

Supplies	255
Supplies Expense		255