The balance for supplies is $41,000 and $27,000 for 12/31/05 and 12/31/06, respectively. During the 2006, the company recorded $30,500 of supplies expense was recorded. How much new supplies were purchased?
A)$44,500
B)$16,500
C)$14,000
D)$30,500

Question

Quizplus · Accepted Answer

To find out how much new supplies were purchased, we need to use the formula:
New Supplies = Supplies at the end of the year - Supplies at the beginning of the year + Supplies Expense recorded during the year
New Supplies = $27,000 - $41,000 + $30,500
New Supplies = $16,500
Therefore, the answer is B) $16,500.

The Balance for Supplies Is $41,000 and $27,000 for 12/31/05