Question

The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28 were $1,100 and $475, respectively. If the office supplies expense for the month is $1,200, what amount of office supplies was purchased during February?

Answer 1

Answer:

$575

Explanation:

Given that,

Opening office supplies = $1,100

Closing office supplies = $475

Office supplies expense for the month = $1,200

Opening stock + Purchases - Closing stock = Consumption

$1,100 + Purchases - $475 = $1,200

$625 + Purchases = $1,200

Purchases = $1,200 - $625

                  = $575

Therefore, the amount of office supplies was purchased during February is $575.