On May 1,Counts,Inc.has a balance of $1,000 in office supplies.During May,the company buys $500 more of the office supplies.On May 31,the company counts the supplies and finds $200 of supplies remaining.What will the company report on its income statement for the month of May?

Question

Quizplus · Accepted Answer

The company will report a supplies expense of $1,300 for May. This is calculated by starting with the initial balance of $1,000, adding purchases of $500, which equals $1,500 in total supplies available. If there are $200 of supplies remaining at the end of May, it means $1,300 worth of supplies were used during the month, which is the expense reported on the income statement.