Question

The supplies account has a balance of $1,000 at the beginning of the year and was debited during the year for $2,800, representing the total of supplies purchased during the year. If $750 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is

Answer 1

The supplies expense to be reported on the income statement for the year can be calculated using the formula:

Supplies expense = Beginning supplies balance + Supplies purchased during the year - Ending supplies balance

Substituting the given values, we get:

• Supplies expense = $1,000 + $2,800 - $750
• Supplies expense = $3,050

Therefore, the supplies expense to be reported on the income statement for the year is $3,050.

~ Zeph