Lean Ltd. had a balance of $52,300 in the office supplies account at the start of the year. During the year, purchases of $141,700 were made and debited to the office supplies account. At the end of the year, a physical count of the office supplies indicated $41,800 on hand. What was the office supplies expense for the year?
A)$141,700
B)$152,200
C)$183,500
D)$194,000

Question

Quizplus · Accepted Answer

The formula for calculating office supplies expense is beginning balance + purchases - ending balance.

Using the numbers given:

$52,300 (beginning balance) + $141,700 (purchases) - $41,800 (ending balance) = $152,200

Therefore, the office supplies expense for the year was $152,200.

Lean Ltd Had a Balance of $52,300 in the Office Supplies