On 1 July 2015,Green Ltd had office supplies costing $20 000.During the year ended 30 June 2016,the company purchased supplies costing $32 000.Of these,$4000 worth was returned to the supplier as unsatisfactory.At 30 June 2016,it was ascertained that $7000 worth of the supplies remained unused.What was the value of Green Ltd's office supplies expense for year ended 30 June 2016?

Question

Quizplus · Accepted Answer

The value of office supplies expense for the year ended 30 June 2016 can be calculated as follows:

Cost of supplies purchased during the year: $32 000
Less: Cost of unsatisfactory supplies returned: $4000
Equals: Cost of supplies available for use: $28 000
Less: Cost of supplies remaining unused: $7000
Equals: Cost of supplies consumed during the year: $21 000

Therefore, the value of Green Ltd's office supplies expense for the year ended 30 June 2016 was $41 000 (i.e. $20 000 + $21 000).

On 1 July 2015,Green Ltd Had Office Supplies Costing $20