Question

Thompson Company had $1,000 in office supplies at the beginning of the fiscal year. At the end of the fiscal year, Thompson Company did an inventory of the office supplies and determined that $300 of supplies remained in the supply room unused. What is the amount of Supplies Expense at the end of the fiscal year?

Answer 1

Answer: Amount of supplies expense = $700

Explanation:

Given the following :

Amount of supplies at the beginning of the year = $1000

Amount of supplies which remained unused = $300

Amount of supplies expense at the end of the fiscal year = Amount of used supplies

Amount of used supplies = (amount of supplies at beginning - amount of unused supplies)

Amount of used supplies = ($1000 - $300)

Amount of used supplies = $700

Therefore, amount of supplies expense = $700