The asset account Office Supplies has a balance of $895 at the beginning of the

Question

The asset account Office Supplies has a balance of $895 at the beginning of the year. The amount on hand at the end of the year is $690. The company has calculated the Supplies Expense for the year to be $5,400. Based on this information, what amount of office supplies was purchased during the year?

$4,710

$6,090

$0

$5,195

The asset account Office Supplies has a balance of $895 at the beginning of the year. The amount on hand at the end of the year is $690. The company has calculated the Supplies Expense for the year to be $5,400. Based on this information, what amount of office supplies was purchased during the year?

Explanation / Answer

Amount of office supplies was purchased during the year = Office Supplies at end of the year + Supplies Expense for the year - Office Supplies at beginning

= $690 + $ 5400 - $895

= $5195

ANSWER =D) $ 5195

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