Hello, I need help with calculating Stationary and Printing Expense for 12 months. The scenario is as follows. Office stationary will be purchased during the first quarter in sufficient quantities to last the entire year. Said cost is estimated at $10,000.What is theStationary and Printing expense for each 12 months. I calculated $3,333 for the first 3 months and the rest is $0 which is incorrect. What is the expense for each 12 months. Please help me to calculate it right. Thank you!
Expert Answer
ANSWER:
When you use the accrual basis of accounting, then are recording the unused office supplies in an asset account and charging the supplies to an expense account when these ae used, thus in this scenario it will be divided equally in 12 months which means 833.33 per month