On April 1,Spring Floral,Inc.has a balance of $300 in Supplies.During April,the company buys $900 more of the supplies.On April 30,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its month ended April 30 income statement?

Question

Quizplus · Accepted Answer

The company will report a Supplies expense of $1,000 on its income statement, which is calculated by starting with the initial balance of $300, adding purchases of $900, and subtracting the ending balance of $200. This shows that $1,000 worth of supplies were used during the month.