The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500. Based on this information, what amount of office supplies was purchased during the year

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Business

Maximilian Hooper

26 June, 04:51

The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500. Based on this information, what amount of office supplies was purchased during the year

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Myles Blackwell · Answer 1

Purchases = $3,200

Explanation:

Giving the following information:

The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500.

To calculate the number of purchases, we need to use the following formula:

Purchases = expense of the year + ending balance - beginning balance

Purchases = 3,500 + 500 - 800 = $3,200