Question

The office supplies account had a $240 debit balance on december 31, 2016. during 2017, $5,200 of office supplies are purchased. a physical count of supplies at december 31, 2017, shows $440 of supplies available answers

Answer 1

The office supplies expense for the year 2017 is calculated by adding the beginning balance and purchases and then subtracting the ending inventory, which results in a total expense of $5,000.

Step-by-step explanation:

The office supplies account had a $240 debit balance on December 31, 2016. Throughout 2017, $5,200 worth of office supplies were purchased. At the end of the year, on December 31, 2017, a physical inventory count revealed there were $440 of supplies on hand. To calculate the office supplies expense for the year, we start with the initial balance, add the purchases, and then subtract the ending inventory.

Beginning balance (debit): $240
Purchases (additions): +$5,200
Ending inventory (credit): -$440
Supplies Expense for 2017: $5,000

The calculation is as follows: ($240 + $5,200) - $440 = $5,000. This is the amount that will be reported as an expense for office supplies on the income statement for the year 2017.

Answer 2

If you are looking for the adjusting entry at the end of the year, it would be:

Office Supplies Expense 5000 Office Supplies 5000

The amount to be recorded is 5000 because:

Beginning supplies is $240

Then there is an additional supplies $5,200

So there is a total of 5,440 supplies.

But the ending inventory is $440.

Deduct the $440 from the $5440 which will give us $5,000. This is to make sure that the amount in the journal entry at the end of the year will be same with the physical count of the supplies.