Tracy, Inc.

-Refer to the trial balance for Tracy, Inc.
On July 31, the amount of supplies on hand is $520.What amount is reported in the July income statement for supplies expense?

Question

Tracy, Inc.
 
-Refer to the trial balance for Tracy, Inc.
On July 31, the amount of supplies on hand is $520.What amount is reported in the July income statement for supplies expense?

Quizplus · Accepted Answer

The July income statement reports the amount of supplies used during the month, not the amount on hand. The supplies expense is calculated by taking the beginning balance of supplies ($1,400) and subtracting the ending balance of supplies ($520), which equals $880.

Tracy, Inc. -Refer to the Trial Balance for Tracy, Inc