Frank Corporation purchased supplies at a cost of $15,000 during 2016.At January 1, 2016, supplies on hand were $2,000.At December 31, 2016, supplies on hand are $2,500.Calculate supplies expense for 2016.

Question

Quizplus · Accepted Answer

To calculate supplies expense, we need to subtract the value of supplies on hand at the end of the year from the total value of supplies purchased during the year and add the value of supplies on hand at the beginning of the year:

Supplies expense = $15,000 (total supplies purchased) - $2,500 (supplies on hand at end of year) + $2,000 (supplies on hand at beginning of year) = $14,500

Therefore, the correct answer is B) $14,500.

Frank Corporation Purchased Supplies at a Cost of $15,000 During