Question
The Office Supplies Inventory account had a balance of $ 2,000 at the start of fiscal year X1. Purchases of supplies during the year amounted
The Office Supplies Inventory account had a balance of $ 2,000 at the start of fiscal year X1. Purchases of supplies during the year amounted to $ 9,000. Finally, the cost of supplies not used at the end of the fiscal year was estimated at $ 3,500, following an inventory check. Note that all purchases during the period were posted to the Office Supplies Inventory (ESF) account.
From this information, indicate the amount that should be presented in the income statement as office supplies used (expense) for fiscal year X1?:
1) 7 500 $
2) 9 000 $
3) 5 500 $
4) 11 000 $
5) none
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