A company started the year with no supplies. During this year they bought $230 worth of supplies on account and later paid $150 of this debt. If there were $20 supplies left at the end of this year, what was the supply expense for the period?
A)$210
B)$80
C)$20
D)$60

Question

Quizplus · Accepted Answer

The supply expense can be calculated as:
Beginning Supplies + Supplies Bought - Supplies Paid - Ending Supplies
Since the beginning supplies were zero, we can skip that term.
Supply expense = $230 - $150 - $20 = $60
Therefore, the correct answer is choice A.

A Company Started the Year with No Supplies