Question

The asset account, Office Supplies, had a beginning balance of $3,700. During the accounting period, office supplies were purchased, on account, for $2,500. Supplies Expense for the accounting period is $4,300. What is the ending balance of Office Supplies?

A) $6,200
B) $1,900
C) $4,300
D) $5,500

Answer 1

The ending balance of Office Supplies is $1,900.

Step-by-step explanation:

The ending balance of the asset account, Office Supplies, can be calculated by adding the beginning balance, purchases, and deducting the expenses from it.

Beginning balance of Office Supplies: $3,700

Purchases of office supplies on account: $2,500

Expenses for office supplies: $4,300

Now, let's calculate the ending balance:

Ending balance = Beginning balance + Purchases - Expenses

Ending balance = $3,700 + $2,500 - $4,300

Ending balance = $1,900

Therefore, the ending balance of Office Supplies is $1,900.