Question

The asset​ account, Office Supplies had a beginning balance of $ 6 comma 000$6,000. During the accounting​ period, office supplies were​ purchased, on​ account, for $ 5 comma 000$5,000. A physical​ count, on the last day of the accounting​ period, shows $ 2 comma 100$2,100 of office supplies on hand. What is the amount of Supplies Expense for the accounting​ period?

Answer 1

The amount of Supplies Expense for the accounting​ period is $9,000

Step-by-step explanation:

The computation of the supplies expense is shown below:

= Beginning balance of office supplies + purchase of office supplies - office supplies on hand

= $6,000 + $5,000 - $2,000

= $9,000

The journal entry is shown below for better understanding:

Supplies Expense A/c Dr $9,000

To supplies A/c $9,000

(Being supplies expense is adjusted)