The asset account Office Supplies has a balance of $800 at the beginning of the year.The amount on hand at the end of the year is $500.The company has calculated the Supplies Expense for the year to be $3,500.Based on this information,what amount of office supplies was purchased during the year?

Question

Quizplus · Accepted Answer

To find out the amount of office supplies purchased during the year, we need to use the following formula:

Office Supplies purchased = Beginning balance + Purchases - Ending balance

We know that the beginning balance is $800, the ending balance is $500, and the Supplies Expense for the year is $3,500. We need to solve for purchases:

Purchases = Supplies Expense + Ending balance - Beginning balance 
Purchases = $3,500 + $500 - $800 
Purchases = $3,200

Therefore, the amount of office supplies purchased during the year is $3,200 (Option C).

The Asset Account Office Supplies Has a Balance of $800