On March 3,Cobra Inc.purchased a desk for $450 on account.On March 22,Cobra purchased another desk for $500 also on account,and then on March 24,Cobra paid $400 on account.At the end of March,what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

Question

Quizplus · Accepted Answer

Cobra purchased two desks on account for a total of $950 ($450 + $500). They made a payment of $400 on account, leaving a balance of $550 ($950 - $400). Therefore, at the end of March, Cobra should report $550 for desks.