On June 1, Unidevo, Inc.purchased $2,300 worth of supplies on account.Prior to the purchase, the balance in the supplies account was $350.On December 31, the fiscal year-end for Unidevo, it is determined that $500 of supplies still remain.What is the balance in the supplies account after adjustment?
A) $0
B) $1,800
C) $500
D) $2,300

Question

Quizplus · Accepted Answer

To determine the balance in the supplies account after adjustment, we need to subtract the amount of supplies used during the year ($2,300 - $500 = $1,800) from the balance in the supplies account prior to the purchase ($350). This gives us a balance of $2,150. However, since the initial purchase was made on account, we also need to add the $2,300 purchase to this balance, which brings us to a total balance of $4,450. Finally, since we know that $500 of supplies still remain at the end of the fiscal year, we can subtract that amount from our total balance to get the adjusted balance in the supplies account: $4,450 - $500 = $3,950. However, this answer is not one of the choices listed. The only choice that is close is C, which represents the amount of supplies still remaining at the end of the year. Therefore, the best choice is C.