Question

The supplies account had a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representing the total of supplies purchased during the year. If $400 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

a. $2,000
b. $400
c, $6,400
d. $6,800

Answer 1

c, $6,400

Step-by-step explanation:

Supply is an account on current asset on B/s

Balance at the beginning of the year = 4400

added during the year = 2400

Total = 6800

balance at the end of the year = 400

cash received = 6800 - 400

= 6400

income accounted for = 6400