Question

On March 3, Cobra Inc. purchased a desk for $280 on account. On March 22, Cobra purchased another desk for $410 also on account, and then on March 24, Cobra paid $560 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

Answer 1

Answer:

The amount of $690  should recorded for desks

Explanation:

The amount which should be reported for desks at the end of march is computed:

Amount that should be reported for desks = Purchased on March 3 + Purchased on March 22

where

Purchased on March 3 amounts to $280

Purchased on March 22 amounts to $410

Putting the values above:

Amount = $280 + $410

= $690

Therefore, the amount of $690, which is to be recorded for the desks purchased by the Cobra company.