. 3 25/ Before recording adjusting entries, the Office Supplies account had a $359 debit balance while a physical count of the supplies showed $105 of unused supplies on hand. Thus, the required adjusting entry is Debit Office Debit Office Debit Office Debit Office Supplies Expense Supplies $254 and Supplies Expense Supplies $105 and $105 and credit credit Office $254 and credit credit Office Office Supplies Supplies Expense Office Supplies Supplies Expense $105 $254 $254 $105 type 0 1815 . 2-1-200 5 00 20 7 Y o P t 4 5 D G H J K zxc V B N M Understatement of ending inventory causes Cost of goods sold cost of goods sold cost of goods sold cost of goods sold to be overstated to be overstated to be understated to be overstated and net income to and net income to and net income to and net income to be overstated be accurate be understated be understated UNG 23-11 o H K L C V B N /// M Micro Office Horrent