Question

Bravo company had $5,100 of supplies on hand at the beginning of 2016. on march 31 bravo purchased an additional $12,400 of supplies. on december 31, a physical count of revealed a total of $6,100 of supplies on hand. what dollar value of supplies expense will be reported in the annual financial statements? acct 220

Answer 1

Supplies expense is $11,400.00.

Expenses = Beg Inv + Addl Inv - Remaining
                 = 5,100 + 12,400 - 6,100
                 = 11,400

Answer 2

Answer:

The value of supplies expense that will be reported in the annual financial statement is $11400.

Explanation:

The supplies expense that would be reported is calculated as the amount of supplies consumed during the period. The amount of supplies consumed is the difference between the supplies available for consumption less the ending value of supplies on hand.

Supplies available for consumption = Opening inventory of Supplies + Purchases of Supplies

Supplies available for consumption = 5100 + 12400 = $17500

Supplies expense = 17500  -  6100  = $11400

The entry to record supplies expense for the year will be,

Supplies expense     11400 Dr

    Supplies account     11400 Cr