Question

On june 1, unidevo, inc. purchased $1,700 worth of supplies on account. prior to the purchase, the balance in the supplies account was $0. on december 31, the fiscal year-end for unidevo, it is determined that $800 of supplies still remain. what is the balance in the supplies account after adjustment?

Answer 1

Of the $1,700 worth of supplies purchased only $800 remains. Since there is no information provided about other supply purchases we can assume this was the only one. That means the $800 amount remaining will be the balance at the end of the year.