The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting period, shows $2,000 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?

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Business

Ace

4 February, 22:54

The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting period, shows $2,000 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?

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Ashton Morris · Answer 1

The amount of Supplies Expense for the accounting period is $8,800

Explanation:

Supplies Expense for the accounting period = Beginning Office Supplies balance + Purchased Office Supplies - Ending Office Supplies balance

In the case:

Office Supplies had a beginning balance of $5,700. The amount of purchasing Office Supplies were $5,100.

On the last day of the accounting period, the amount of office supplies on hand were $2,000

Supplies Expense = $5,700 + $5,100 - $2,000 = $8,800