The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28 were $800 and $400, respectively. If the office supplies expense for the month is $1,000, what amount of office supplies was purchased during February? A. $600 B. $1,400 C.$400 D. $1,200 E.$800

A. $ 600

Explanation:

Computation of office supplies purchases during February

The formula for calculating the purchases is:

Opening Inventory + Purchases - Expenses = ending inventory Supplies

$ 800 + Purchases - $ 1000 = $ 400

By solving the equation, the purchase value is calculated at $ 600

Another approach is to see that the change in supplies inventory balance is a reduction of $ 400, The expenses of $ 1000 is contributed by a reduction in supplies of $ 400 and the remaining balancing amount of $ 600 is the purchases

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