Gear Shop purchased supplies at a cost of $1,000 during the year.At January 1, the beginning balance in the supplies account was $300.At December 31, supplies on hand are $100.Determine supplies expense for the year.

Question

Quizplus · Accepted Answer

Supplies expense for the year can be calculated as follows:
Beginning supplies balance = $300
Add: Supplies purchased during the year = $1,000
Total supplies available = $1,300
Less: Supplies on hand at the end of the year = $100
Supplies expense for the year = $1,300 - $100 = $1,200. Therefore, the correct answer is option B.

Gear Shop Purchased Supplies at a Cost of $1,000 During