60 – Office Supplies Expense

Operating Expenses

Synopsis

Account 60

Remarks:

Proper methods of control should be established to minimize waste and unnecessary expense.  Control of these expenses may be affected through the use of Purchase Orders.

Typical charges (including freight and sales tax) to this account include such items as stationary, invoices, repair orders, accounting forms, general office supplies.

Documents such as parts counter sales invoices, purchase orders; checks, etc. should be controlled inasmuch as they can be misused with costly results.

Pre-numbered documents should be used in numerical sequence.  Check-off sheets should be maintained for all pre-numbered documents.  Those that do not clear in their normal sequence, or that may be outstanding longer than usual, should be investigated and their disposition determined.

Pre-numbered documents that may be voided should be recorded in their respective journal within their numerical sequence and should be indicated as having been void on all copies of the document, in the journal, and on the check-off sheet.  It is recommended that voided documents be filed intact within their numerical sequence.

Stationary and office supplies are normally expensed at the time of purchase; however, when purchases are made in lot quantities (for extended periods of time) these expenses should be set up as a prepaid expense and prorated over the estimated period.