Gear Shop purchased supplies at a cost of $1,000 during the year.At January 1,the beginning balance in the Supplies account was $300.At December 31,supplies on hand are $100.Determine supplies expense for the year.

Question

Quizplus · Accepted Answer

Supplies expense for the year can be calculated as follows:

Beginning balance in Supplies account + Supplies purchased during the year - Ending balance in Supplies account = Supplies expense for the year

$300 + $1,000 - $100 = $1,200

Therefore, the supplies expense for the year was $1,200, which corresponds to option B.

Gear Shop Purchased Supplies at a Cost of $1,000 During