The supplies account has a balance of $975 at the beginning of the year and was debited during the year for $2800,representing the total of supplies purchased during the year.If $750 of supplies is on hand at the end of the year,the supplies expense to be reported on the profit and loss statement for the year is:

Question

Quizplus · Accepted Answer

The supplies expense can be calculated as follows:
Beginning balance + Purchases - Ending balance = Supplies expense
$975 + $2800 - $750 = $3025
Therefore, the supplies expense to be reported on the profit and loss statement for the year is $3025, which is option D.

The Supplies Account Has a Balance of $975 at the Beginning