Question

The following Office Supplies account information is available for Able, Inc.

Beginning balance $1,800
Office Supplies expensed $3,000
Ending balance $2,000

From the above information, calculate the amount of office supplies purchased.
A. $1,800
B. $3,200
C. $5,200
D. $3,800
E. None of the above

Answer 1

The amount of office supplies purchased by Able, Inc. is B. $3,200. This is found by adding the expensed amount to the ending balance and subtracting the beginning balance.

Step-by-step explanation:

You need to calculate the amount of office supplies purchased by Able, Inc. Given the beginning balance of office supplies is $1,800, the company expensed $3,000 in office supplies, and the ending balance is $2,000, you can use the following information to find the answer:

To calculate the amount of office supplies purchased, you will add the office supplies expensed to the ending balance and then subtract the beginning balance.

Purchase Amount = Expensed + Ending Balance - Beginning Balance

Purchase Amount = $3,000 + $2,000 - $1,800

Purchase Amount = $5,000 - $1,800

Purchase Amount = $3,200