The supplies account had a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representing the total of supplies purchased during the year. If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
A) $400
B) $2,000
C) $6,800
D) $6,400

Question

Quizplus · Accepted Answer

The supplies expense is calculated as the beginning balance ($4,400) plus purchases ($2,400) minus the ending balance ($400), which equals $6,400.

The Supplies Account Had a Balance of $4,400 at the Beginning