The following information is available for Able Company's Office supplies account. $$\begin{array} { | l | l | }
\hline \text { Beginning balance } & \$ 1600 \
\hline \text { Office supplies expensed } & 7000 \
\hline \text { Ending balance } & 4000 \
\hline
\end{array}$$ From the above information,calculate the amount of office supplies purchased.
A)$9400
B)$1600
C)$4000
D)$7000

Question

The following information is available for Able Company's Office supplies account. $$\begin{array} { | l | l | } 
\hline \text { Beginning balance } & \$ 1600 \
\hline \text { Office supplies expensed } & 7000 \
\hline \text { Ending balance } & 4000 \
\hline
\end{array}$$ From the above information,calculate the amount of office supplies purchased.
A)$9400
B)$1600
C)$4000
D)$7000

Quizplus · Accepted Answer

The amount of office supplies purchased can be calculated using the formula: Beginning balance + Purchases - Expensed = Ending balance. Solving for Purchases gives: Purchases = Ending balance - Beginning balance + Expensed = 4000 - 1600 + 7000 = 9400.

The Following Information Is Available for Able Company's Office Supplies