The asset account, Office Supplies had a beginning balance of $ 6 comma 000$6,000. During the accounting period, office supplies were purchased, on account, for $ 5 comma 000$5,000. A physical count, on the last day of the accounting period, shows $ 2 comma 100$2,100 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?

Question

Nolan Munoz

Business

19 October, 05:15

The asset account, Office Supplies had a beginning balance of $ 6 comma 000$6,000. During the accounting period, office supplies were purchased, on account, for $ 5 comma 000$5,000. A physical count, on the last day of the accounting period, shows $ 2 comma 100$2,100 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?

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Answers (1)

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Zion Golden · Answer 1

The amount of Supplies Expense for the accounting period is $9,000

Explanation:

The computation of the supplies expense is shown below:

= Beginning balance of office supplies + purchase of office supplies - office supplies on hand

= $6,000 + $5,000 - $2,000

= $9,000

The journal entry is shown below for better understanding:

Supplies Expense A/c Dr $9,000

To supplies A/c $9,000

(Being supplies expense is adjusted)