Question

The following Office Supplies account information is available for Nabors Company. Beginning balance ​$2,000 Office Supplies expensed ​8,000 Ending balance ​1,000 From the above​ information, calculate the amount of office supplies purchased?

Answer 1

Answer:

$7,000

Explanation:

Data provided in the question:

Beginning balance = ​$2,000

Office Supplies expenses = ​$8,000

Ending balance = $​1,000

Now,

Let the amount of office supplies purchased be 'x'

Therefore,

Ending balance = ​Beginning balance + Purchases - Office Supplies expenses

or

$1,000 = $2,000 + x - $8,000

or

$1,000 = - $6,000 + x

or

x = $7,000