The asset account Office Supplies has a balance of $800 at the beginning of the year.The amount on hand at the end of the year is $500.The company has calculated the Office Supplies Expense for the year to be $3,500.Based on this information,what amount of office supplies was purchased during the year?

Question

Quizplus · Accepted Answer

The amount of office supplies purchased during the year can be calculated using the formula:
Beginning Balance + Purchases - Ending Balance = Expense
$800 + Purchases - $500 = $3,500
Solving for Purchases, we get:
Purchases = $3,500 + $500 - $800 = $3,200
Therefore, the answer is C.

The Asset Account Office Supplies Has a Balance of $800