Question

On January 1, Squid Roe, Inc. had a supplies balance of $1,500. During the year, it purchased $40,000 of supplies on credit, of which $30,000 was paid. At the end of the year, it had $2,000 of supplies on hand. The amount of Supplies Expense for the year end December 31 equals $?

Answer 1

At the end of the year the supplies expenses will be 9,500 $

Explanation:

With the help of Preparing Suppllies Account we got the answer

                                 Supplies Account

                                                                      jan 1  By balance b/d         1,500

                 To Cash (expenses) Bal 9,500            By Purchase         40,000

                  To Bank (paid )             30,000

 Dec 31      To bal c/d                        2,000

So by preparing Supplies Account we got the balance amount of Expenses paid to supplies are 9,500 $