On 1 July 2018, Green Ltd had office supplies costing $20 000. During the year ended 30 June 2019, the company purchased supplies costing $32 000. Of these, $4 000 worth was returned to the supplier as unsatisfactory. At 30 June 2019, it was ascertained that $7 000 worth of the supplies remained unused. What was the value of Green Ltd's office supplies expense for year ended 30 June 2019?

Question

Quizplus · Accepted Answer

The office supplies expense for the year ended 30 June 2019 can be calculated as follows:

Beginning office supplies = $20 000
Plus purchases = $32 000 - $4 000 (returned) = $28 000
Minus ending office supplies = $7 000

Therefore, office supplies expense = $20 000 + $28 000 - $7 000 = $41 000. So, the correct answer is option B.

On 1 July 2018, Green Ltd Had Office Supplies Costing