Problem: On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. During 2007, supplies purchases amounted to $5,000. A physical count of inventory on hand at December 31, 2007, showed $1,200. The 2007 income statement should report supplies expense amounting to A. $ 6,000. B. $ 5,200. C. $ 4,800. D. $ 1,000.
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Problem Details
On January 1, 2007, the ledger of Global Corporation correctly showed supplies inventory of $1,000. During 2007, supplies purchases amounted to $5,000. A physical count of inventory on hand at December 31, 2007, showed $1,200. The 2007 income statement should report supplies expense amounting to
A. $ 6,000.
B. $ 5,200.
C. $ 4,800.
D. $ 1,000.
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