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Electra Company purchased $50,000 worth of office supplies on January 1. Electra expects to use 60 percent of the supplies in the first year and the remainder in the second year. How much should Electra show in its Supplies Expense account at the end of the first fiscal year (ending December 31st)

Respuesta :

Answer:

$30,000

Explanation:

Data provided in the question

Purchase value of the office supplies = $50,000

Expected to use supplies in the first year = 60%

So expected to use supplies in the second year = 40%

Based on the above information, the supplies account balance at the end of the first fiscal year is

= Purchase value of the office supplies × Expected to use supplies in the first year

= $50,000 × 60%

= $30,000

We simply multiplied the purchased value with the expected supplies use in the first year so that the balance of the supplies for the first year could come

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