On August 1, the supplies account balance was $1,025. During August, supplies of $3,110 were purchased, and $1,324 of supplies were on hand as of August 31. Determine supplies expense for August.
Answer:
Using the following T account, solve for the amount of supplies expense (indicated by ? below).
Aug. 1 Bal. 1,025 ? Supplies expense Supplies purchased 3,110 Aug. 31 Bal. 1,324
$1,324 = $1,025 + $3,110 – Supplies expense
Supplies expense = $1,025 + $3,110 – $1,324 = $2,811