Vake purchased supplies at a cost of $18,000 during 2016.At January 1, 2016, the beginning balance in the supplies account was $1,000.For 2016, supplies expense was $16,000.How much "Supplies" are on hand as of December 31, 2016?

Question

Quizplus · Accepted Answer

The total supplies available for use in 2016 would be the beginning balance plus the supplies purchased during the year, or $1,000 + $18,000 = $19,000. However, we also know that supplies expense for the year was $16,000, which means that $16,000 worth of supplies were used during the year. To find out how much is left on hand as of December 31, 2016, we subtract the supplies expense from the total supplies available: $19,000 - $16,000 = $3,000. Therefore, the answer is B) $3,000.

Vake Purchased Supplies at a Cost of $18,000 During 2016