Question

In Year 3, Merle Company (the firm) paid $67 to the vendors who sell and deliver supplies to Merle. The firm's fiscal year ends on December 31. Assume all Accounts Payable are related to supplies purchased. Dec. 31, Dec. 31, Year 2 Year 3 Supplies Inventory $3 $5 Accounts Payable 2 Q#25. What Supplies Expense would appear in the firm's income statement (accrual basis) for the year ended December 31, Year 3?

Answer 1

6 $ $ Accounts Payable Beginning Balance 67 Purchases (Bal. fig) 2 69 Bank (payment) Ending Balance 63 $ $ $ $ $ 69 Beginning Balance Purchase $ $ Supplies Inventory 3 63 Supplies Expense (Bal. fig) Ending Balance $ $ $ 61 5 66 $ 66 Supplies Expense appear in Income Statement $ 61

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