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The asset account Office Supplies has a balance of $825 at the beginning of the year. The amount on hand at the end of the year is $550. The company has calculated the Supplies Expense for the year to be $4,000. Based on this information, what amount of office supplies was purchased during the year

Respuesta :

Answer:

$3,725

Explanation:

The movement in the asset account Office Supplies is as a result of purchases and use (which is accounted for as expenses).

Given

asset account Office Supplies beginning balance = $825

Closing balance = $550

Supplies Expense for the year = $4,000

Let the supplies purchased be G

$825 + G - $4,000 = $550

G = $550 + $4,000 - $825

G = $3,725

The amount of office supplies was purchased during the year is $3,725

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