Place Corp.purchased supplies at a cost of $12,000 during the year.At January 1,supplies on hand were $2,000.At December 31,supplies on hand are $1,000.Determine the amount of supplies expense for the year.

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Quizplus · Accepted Answer

The supplies expense for the year is the cost of supplies purchased ($12,000) minus the supplies on hand at the end of the year ($1,000) plus the supplies on hand at the beginning of the year ($2,000). Therefore, supplies expense for the year is $12,000 - $1,000 + $2,000 = $13,000. Therefore, the correct answer is C.