Question

Farah Travel Agency had a balance of $750 in Supplies account on January 1 2017. During the month, the Agency purchased supplies costing $2,500. On January 31 an inventory count showed that $900 of supplies were still on hand. What is the supplies expense for the month of January?

Answer 1

Solution

The following information is provided in the question:

Opening balance of supplies as on 1st January 2019 = 750 dollars

Total supplies purchased during the month of January 2019 = $2,500

Closing stock of supplies as on 31st January 2017 = $900

From the given information above we can calculate the supplies that are Used during the month.

Statement showing the calculation of the amount of supplies expense,

in the month of January 2017

	Particulars	Amount
A.	Opening balance of supplies as on 1 jan 2017	$ 750
B.	Add : supplies purchased during the month	$ 2,500
C.	Total supplies available during the month ( A + B )	$ 3, 250
D.	Less: closing stock of supplies as on 31 jan 2017	$ 900
E.	Cost of Supplies used during the month jan 17 ( C- D)	$ 2,350

as calculated above the supplies expense for the month is 2,350 dollars.

Finish.