A company had no office supplies available at the beginning of the year. ?
black&angel asked:
A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?
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A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?
February 15th, 2009 at 8:11 am
$250. Even if $75 remained, the money has already been spent and the company has that $75 worth of supplies as inventory.
February 16th, 2009 at 7:50 pm
$250 expense, the amount spent.
February 18th, 2009 at 3:25 am
The company only used $175 worth of the $250 office supplies purchased during the year.
$175 is Office Supplies Expense for the year.
The remaining $75 of office supplies is carried over to the next year as an asset.