During its first year of business,XYZ Inc.purchased $2,400 of supplies.By the end of the year,only $500 of supplies remain in the supply cabinet.Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.
A) $500
B) $1,900
C) $2,400
D) $2,900

Question

Quizplus · Accepted Answer

The amount to be reported in the Supplies account is the remaining supplies, which is $500. The rest has been used up and should be recorded as an expense.

During Its First Year of Business,XYZ Inc