The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 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) $650
B) $1,750
C) $4,150
D) $2,850

Question

Quizplus · Accepted Answer

The supplies expense is calculated as the beginning balance plus purchases minus the ending balance: $1,200 + $2,300 - $650 = $2,850.

The Supplies Account Has a Balance of $1,200 at the Beginning