Office or Store Supplies note to the financial statements

This note will explain the amount of office supplies and/or store supplies your company intends to buy during each business year. It will also tell the reader how much of the supplies you estimate will be used or consumed each year. An example of a "supplies" note is as follows.

Office Supplies:
The following office supplies are forecasted to be purchased during 200X and 200Y.

For simplicity, 50% of the office supplies purchased throughout each year is estimated to be consumed and therefore expensed. The remaining 50% will be recorded as a current asset entitled "office supplies" on the company's 200X and 200Y forecasted balance sheets.