Question

During the accounting​ period, office supplies were purchased on account for $ 3 comma 000. A physical​ count, on the last day of the accounting​ period, shows $ 1 comma 400 of office supplies on hand. Supplies Expense for the accounting period is $ 3 comma 400. What was the beginning balance of Office​ Supplies?A. $4,000B. $600C. $2,200D. There is not enough information to answer this question.

Answer 1

Answer:

B. $600

Explanation:

* Data given in the Question is inconsistent with the options provided. A similar and accurate question which has the same option as given above is attached with the answer. Following answer is made accordingly.

Data Provided in the attached question is as follow:

Office supplies balance at the end of the year = $1,200

Purchases for the period = $3,400

Expense for the period = $2,800

Inventory account balance at the beginning of the year =

Use following formula to calculate beginning balance of office supplies:

Inventory account balance at the end of the year = Inventory account balance at the beginning of the year + Purchases for the period - Expense for the period

$1,200 = Inventory account balance at the beginning of the year + $3,400 - $2,800

$1,200 = Inventory account balance at the beginning of the year + $600

Inventory account balance at the beginning of the year = $1,200 - $600

Inventory account balance at the beginning of the year = $600