Question

Moore General Store purchased office supplies on account during the month of February for $4,500. Payment for the supplies will be made in March. On February 1, the balance in the supplies account was $200. On February 28, supplies on hand amounted to $180. What was the amount of supplies USED during February?
Select one:

a. $ 4880

b. $ 4520

c. $ 4320

d. $ 180

Answer 1

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Purchased office supplies = $4,500

Supplies on balance account (in beginning) = $200

Supplies remaining (in end of month) = $180

So, To calculate supplies used in February we use following method:

Supplies Used  = Supplies in Beginning + Purchased office supplies - Supplies in Ending

= $200 + $4,500 - $180

Supplies Used = $4,520

Hence, the amount of supplies USED during February was $4,520.