Question

On January 1, 2016, the general ledger of Global Corporation included supplies of $1,000. During 2016, supplies purchased amounted to $5,000. A physical count of inventory on hand at December 31, 2016, determined that the number of supplies on hand was $1,200. How much is the supplies expense for the year 2016?

Answer 1

Answer:

$4,800

Explanation:

Given that,

On January 1, 2016: supplies = $1,000

During 2016: supplies purchased = $5,000

On December 31, 2016: number of supplies on hand = $1,200

Supplies expense:

= Beginning supplies + supplies purchased - Ending supplies

= $1,000 + $5,000 - $1,200

= $4,800

Therefore, the supplies expense for the year 2016 is $4,800.