Question

The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500. Based on this information, what amount of office supplies was purchased during the year

Answer 1

Answer:

Purchases= $3,200

Explanation:

Giving the following information:

The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500.

To calculate the number of purchases, we need to use the following formula:

Purchases= expense of the year + ending balance - beginning balance

Purchases= 3,500 + 500 - 800= $3,200