Question

The supplies account had a balance of $880 at the beginning of the year and was debited during the year for $3,846, representing the total of supplies purchased during the year. If $2,797 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 is $1,929

Step-by-step explanation:

The computation of the supplies expense to be reported on the income statement for the year is as follows:

= Beginning supplies account balance + purchase of supplies - closing supplies

= $880 + $3,846 - $2,797

= $1,929

Hence, the supplies expense to be reported on the income statement for the year is $1,929