Game Systems Corporation has grown significantly over the past year. The end-of-year supplies on hand totaled $200, and purchases totaled $3,000, and supplies on hand at the beginning of the year amounted to $180. How much will Game Systems report as supplies expense for the current year?
A) $2,980
B) $3,180
C) $3,200
D) $3,000

Question

Quizplus · Accepted Answer

Supplies expense is calculated as beginning supplies + purchases - ending supplies. In this case, beginning supplies are $180, purchases are $3,000, and ending supplies are $200. Therefore, supplies expense is $180 + $3,000 - $200 = $2,980.

Game Systems Corporation Has Grown Significantly Over the Past Year