1) The balance in our office supplies account on January 1 was $10,000. On January 31, our supplies on hand totaled $2,000. What account and amount would we debit when we record the adjusting entry for office supplies on January 31?

a) office supplies expense, $2,000

b) office supplies, $2,000

c) office supplies, $8,000

d) office supplies expense, $8,000

2) We purchased a vehicle for $45,000. It has an estimated useful life of 5 years and no residual value. What is the dollar amount we would record in our adjusting entry each month for depreciation of the vehicle if we use the straight-line method of depreciation?

a) $9,000

b) $900

c) $750

d) $500