Suppose Simeon Company begins the year with $1,000 in supplies,purchases an additional $5,500 of supplies during the year,and ends the year with $700 in supplies.The year-end adjusting entry includes Supplies Expense of $7,200.Supplies Expense = beginning ($1,000)+ purchases ($5,500)- ending ($700).

Question

Quizplus · Accepted Answer

The equation used to calculate the Supplies Expense is incorrect. The correct equation is Supplies Expense = beginning ($1,000) + purchases ($5,500) - ending ($700) = $5,800. Therefore, the statement is false.

Suppose Simeon Company Begins the Year with $1,000 in Supplies,purchases