Brandt Corporation's office supplies account balance at the end of 2009 and 2010 was $110,000 and $150,000, respectively. During 2010, Brandt's office supplies expense was $75,000. During 2010, how many dollars of office supplies did Brandt purchase?

Question

Quizplus · Accepted Answer

To find the amount of office supplies Brandt purchased in 2010, we need to adjust the office supplies expense by the change in the office supplies account balance. The account balance increased from $110,000 at the end of 2009 to $150,000 at the end of 2010, an increase of $40,000. This means that the purchases were $75,000 (expense) + $40,000 (increase in supplies) = $115,000.

Brandt Corporation's Office Supplies Account Balance at the End of 2009