The Supplies account has a balance of $750 at the beginning of the year and was debited during the year for $2800,representing the total of supplies purchased during the year.If $950 of supplies are on hand at the end of the year,the supplies expense to be reported on the profit and loss statement for the year is:

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The supplies expense is calculated by subtracting the supplies on hand at the end of the year ($950) from the total supplies purchased during the year ($2800). Thus, supplies expense = $2800 - $950 = $1850. However, the Supplies account had a balance of $750 at the beginning of the year, which means that $750 worth of supplies were used up during the year and included in the supplies expense. Therefore, the supplies expense to be reported on the profit and loss statement for the year is $1850 - $750 = $2600.

The Supplies Account Has a Balance of $750 at the Beginning