Question

A company had no office supplies available at the beginning of the year. During the year, the company purchased $290 worth of office supplies. On December 31, $85 worth of office supplies remained. How much should the company report as office supplies expense for the year

Answer 1

Answer:

Expensre for the year is $205

Explanation:

The cosumable equipment which offices uses regularly for professional working writing recording etc. Company holds it's inventory and record it transactions in office supplies account.

Beginning Supplies = $0

Purchases for the year = $290

Supplies at December 31 = $85

As we know

Ending Balance  = Beginning Balance + Purchases - Expense for the period

$85 = $0 + $290 - Expense for the period

$85 = $290 - Expense for the period

Expense for the period = $290 - $85 = $205