O'Connor Company purchased supplies totaling $21,600. By year end, $9,300 of supplies were still on hand. How much Supplies Expense should O'Connor recognize?

Question

Quizplus · Accepted Answer

The Supplies Expense should only recognize the amount of supplies actually used during the year, which is determined by subtracting the ending inventory of $9,300 from the total supplies purchased of $21,600:

$21,600 - $9,300 = $12,300

Therefore, the correct answer is B) $12,300.

O'Connor Company Purchased Supplies Totaling $21,600