On January 1, 2014, the general ledger of Global Corporation included supplies of $1,000. During 2014, supplies purchases amounted to $5,000. A physical count of inventory on hand at December 31, 2014 determined that the amount of supplies on hand was $1,200. How much is the 2014 supplies expense?

Question

Quizplus · Accepted Answer

The supplies expense is calculated as the beginning balance plus purchases minus the ending balance: $1,000 + $5,000 - $1,200 = $4,800.

On January 1, 2014, the General Ledger of Global Corporation