Frank Corporation purchased supplies at a cost of $15,000 during 2017.At January 1,2017,supplies on hand were $2,000.At December 31,2017,supplies on hand are $2,500.Calculate supplies expense for 2017.

Question

Quizplus · Accepted Answer

Supplies expense can be calculated using the following formula:

Supplies expense = Supplies purchased during the year - Supplies on hand at the end of the year + Supplies on hand at the beginning of the year

Substituting the given values, we get:

Supplies expense = $15,000 - $2,500 + $2,000 = $14,500

Therefore, the correct answer is B.

Frank Corporation Purchased Supplies at a Cost of $15,000 During