At January 31, the amount of supplies on hand is $2,300. What amount is shown on the January income statement for supplies expense?

Question

Quizplus · Accepted Answer

The amount of supplies on hand at the end of January is not relevant to the supplies expense shown on the January income statement. To determine the supplies expense, we need to know how much supplies were purchased during January and how much was used up (i.e. consumed) during January. Therefore, we cannot choose A or D. Option B is also incorrect because it does not take into account the beginning balance of supplies, which is not given. The correct answer is C because it is the only option that makes sense without more information. We can assume the supplies expense is equal to the total amount of supplies purchased during January ($3,100) since there is no information about how much supplies were consumed.

At January 31, the Amount of Supplies on Hand Is