Hank's Tax Planning Service has a beginning balance in the Supplies account of $800. During the current month, he purchased an additional $2 000 of supplies. At the end of the month, he had $250 of supplies left. The amount of supply expense to be recorded for the month is:

Question

Quizplus · Accepted Answer

The supply expense is calculated by adding the beginning balance ($800) and the purchases ($2,000) to get the total supplies available ($2,800). Subtract the ending balance ($250) from this total to find the supply expense: $2,800 - $250 = $2,550.

Hank's Tax Planning Service Has a Beginning Balance in the Supplies