A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?
A) $175.
B) $ \$ 75 $.
C) $ \$ 325 $
D) $ \$ 125 $.
E) $ \$ 250 $

Question

A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year? 
A) $175.
B) $ \$ 75 $.
C) $ \$ 325 $
D) $ \$ 125 $.
E) $ \$ 250 $

Quizplus · Accepted Answer

The office supplies expense is calculated as the amount of supplies used during the year. The company started with $0, purchased $250, and had $75 remaining at year-end. Therefore, the expense is $250 - $75 = $175.

A Company Had No Office Supplies Available at the Beginning $75 \$ 75 $75

A Company Had No Office Supplies Available at the Beginning $\$ 75$