Question1(a) The Supplies account had a balance of $1,200 at the beginning of the year and was debited during the year for $3,600, representing the total of supplies purchased during the year. If $1,000 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is: (1 mark) $3,600 None of the options are correct $3,800 $1,000 $2,600 ResetMaximum marks: 1 Flag question undefined

Question

BlackTom AI · Accepted Answer

To determine supplies expense, we consider the flow of supplies during the period. Beginning supplies balance: 1200. Purchases during the year: 3600. Ending supplies on hand: 1000.

Supplies expense = Beginning supplies + Purchases - Ending supplies
= 1200 + 3600 - 1000
= 3800.

Now evaluate the options:
- $3,600: This would only reflect the purchases during the year and does not account for the change in the ending balance or the beginning balance.
- None of the options are correct: This would be true only if none of the listed amounts matched the calculated expense; however, $3,800 is listed, and it matches the calculation.
- $3,800: This exactly matches the computed expense (1200 + 3600 - 1000), so it is correct.
- $1,000: This is simply the ending supplies on hand, not the expense for the period.
- $2,600: This would correspond to 3600 (purchases) minus 1000 (ending on hand) but ignores the beginning balance, which must be included in the expense calculation.

Therefore, the correct computation yields $3,800 as the supplies expense for the year.

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