The Supplies account has a balance of $750 at the beginning of the year and was debited during the year for $2 800, representing the total of supplies purchased during the year. If $950 of supplies are on hand at the end of the year, what is the supplies expense to be reported on the profit and loss statement for the year?

Question

Quizplus · Accepted Answer

The supplies expense is calculated by adding the beginning balance of supplies to the purchases during the year, then subtracting the ending balance. This gives us $750 (beginning balance) + $2,800 (purchases) - $950 (ending balance) = $2,600.

The Supplies Account Has a Balance of $750 at the Beginning