Question

A company's Office Supplies account shows a beginning balance of $720 and an ending balance of $640. If office supplies expense for the year is $3,700, what amount of office supplies was purchased during the period

Answer 1

Answer:

Purchases= $3,620

Explanation:

Giving the following information:

Beginning inventory= $720

Ending inventory= $640

Purchase= ?

Used in the period= $3,700

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

Purchases= used in the period + desired ending inventory - beginning inventory

Purchases= 3,700 + 640 - 720

Purchases= $3,620