A company started the year with no supplies.During this year they bought $200 worth of supplies on account and later paid $150 of this debt.If there were $40 supplies left at the end of this year,what was the supply expense for the period?
A)$160
B)$50
C)$40
D)$10

Question

Quizplus · Accepted Answer

The supply expense for the period can be calculated by adding the beginning supplies ($0) with the supplies purchased during the year ($200) and subtracting the supplies remaining at the end of the year ($40).

Supply expense = Beginning supplies + Supplies purchased - Supplies remaining
Supply expense = $0 + $200 - $40
Supply expense = $160

Therefore, the best choice is A) $160.

A Company Started the Year with No Supplies