During the first year of business, office supplies were purchased for cash in the amount of $2,000 and the amount was debited to Supplies Expense. At the end of the first year, the physical count indicated that $500 of supplies was unused. How much should be reported on the income statement at year end for supplies expense? On the balance sheet for supplies?

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The Answer of During the first year of business, office supplies were purchased for cash in the amount of $2,000 and the amount was debited to Supplies Expense. At the end of the first year, the physical count indicated that $500 of supplies was unused. How much should be reported on the income statement at year end for supplies expense? On the balance sheet for supplies?

During the First Year of Business, Office Supplies Were Purchased