The asset account Office Supplies has a balance of $2,000 at the beginning of the year.The amount on hand at the end of the year is $1,250.The company has calculated the Supplies Expense for the year to be $8,750.Based on this information,what amount of office supplies was purchased during the year?

Question

Quizplus · Accepted Answer

Supplies expense (used)= Beginning balance + Supplies purchased − Supplies on hand at end of period
Supplies purchased = Supplies expense (used)− Beginning balance + Supplies on hand at end of period
= $8,750 − $2,000 + $1,250 = $8,000

The Asset Account Office Supplies Has a Balance of $2,000