Question

cal farms reported supplies expense of 1,700,000 this year. The supplies account decreased by 280,000 during the year to an ending bal of 430,000. what was the cost of supplies that cal farms purchased during the year

Answer 1

Answer:

$1,420,000

Explanation:

supplies expense for the year = beginning balance of supplies account + supplies purchases - ending balance of supplies account

• ending balance of supplies account = $430,000
• beginning balance of supplies account = $430,000 + $280,000 = $710,000
• supplies expense for the year = $1,700,000

$1,700,000 = $710,000 + supplies purchased - $430,000

$1,700,000 = $280,000 + supplies purchased

$1,700,000 - $280,000 = supplies purchased

$1,420,000 = supplies purchased