Jones Company started the accounting period with $500 in supplies.During the period the company purchased $1,100 of supplies on account.At the end of the accounting period there were $700 of supplies on hand.Based on this information,the amount of supplies expense appearing on the end-of-period income statement would be
A) $1,600.
B) $1,100.
C) $900.
D) $400.

Question

Quizplus · Accepted Answer

The supplies expense can be calculated by adding the beginning supplies balance ($500) to the purchases made during the period ($1,100), and then subtracting the ending supplies balance ($700). 
Supplies expense = Beginning supplies + Purchases - Ending supplies 
Supplies expense = $500 + $1,100 - $700 
Supplies expense = $900

Jones Company Started the Accounting Period with $500 in Supplies