supplies definition. There are two types of supplies that may be charged to expense , which are: Factory supplies . The normal accounting for supplies is to charge them to expense when they are purchased, using this entry: Supplies expense refers to the cost of consumables used during a reporting period . Accounting for Office Supplies. The cost of the office supplies used up during the accounting period should be recorded in the income statement account Supplies Expense. Supplies are incidental items that are expected to be consumed in the near future. Depending on the type of business, this can be one of the larger corporate expenses.
The cost of office supplies on hand at the end of an accounting period should be the balance in a current asset account such as Supplies or Supplies on Hand. The account is usually listed on the balance sheet after the Inventory account. A current asset representing the cost of supplies on hand at a point in time.

supplies: General purpose consumable items which commonly have a shorter life span in use than equipment and machines, and which are stocked for recurring use. A related account is Supplies Expense, which appears on the income statement. These supplies …