Question

2. A company's accounting records reveal that Supplies had a beginning balance of $1,000. During the accounting period, the company purchased $500 of supplies. A physical count at the end of the accounting period confirmed that $1,400 of supplies were used. What will be the balance of the supplies account on the adjusted trial balance

Answer 1

Answer:

$100

Explanation:

Of the beginning balance on the supplies account was $1,000 and purchase of supplies of $500, it would have given a balance of $1,500 in the supplies account during the day for the business. The amount that was used from supplies at end of day is $1,400.

So balance at end of day is 1,500- 1,400= $100.

Alternatively we can use the following formula

Closing balance= Opening balance+ Inflows - Outflows

Closing balance= 1,000+ 500 - 1,400

Closing balance= $100