Question
Kerry Company (KC) prepares monthly financial statements. In June, KC purchased $2,000 of office supples on account (on credit). KC. paid for the supplies (all
Kerry Company (KC) prepares monthly financial statements. In June, KC purchased $2,000 of office supples on account (on credit). KC. paid for the supplies (all $2,000) in August. KC used the supplies as follows: $800 in June, $500 in July, $700 in August.
What will KC report as supply expense on its income statement for the month of June?
(Note that I am not asking what gets recorded on the date of purchase. I am asking what ultimately should show up on a correct income statement as supplies expense for June under accrual accounting.) Please enter only a number in the answer box (no punctuation of any kind). (Do not use a negative sign. In the equation, expenses reduce equity. When we ask for a balance in an account, however, we state it as a positive balance if the account balance is normal.)
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