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 are
The Office Supplies Inventory account had a balance of $ 2,000 at the start of fiscal year X1. Purchases of supplies during the year are $ 9,000. Finally, the cost of unused supplies at the end of the fiscal year estimated at $ 3,500, following an inventory price. 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 used (chargeable) office supplies for fiscal year X1?
A $ 7,500
B none of the above
C $ 9,000
D $ 5,500
E $ 11,000
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