Question

A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?
A. $2,900.
B. $2,700.
C. $3,500.
D. $3,700.
E. $3,300.

Answer 1

Answer:

A. $2,900.

Explanation:

Beginning balance of Office Supplies account = $600

Ending balance of Office Supplies account = $400

Supplies expense for the year = $3,100

Ending balance of Office Supplies account = Beginning balance of Office Supplies account + Purchases for the year - Supplies expense for the year

Purchases for the year = Ending balance of Office Supplies account + Supplies expense for the year - Beginning balance of Office Supplies account

Purchases for the year = 400 + 3100 - 600

Purchases for the year = 2,900