Question

At February 1, 2022, the balance in Bonita Industries supplies account was $3080. During February Bonita purchased supplies of $2640 and used supplies of $3520. At the end of February, the balance in the Supplies account should be _________. a. $9240 debit. b. $3080 debit. c. $3960 credit. d. $2200 debit.

Answer 1

Answer:

Balance of Suppliers Account is $2200 debit

Explanation:

It is important to know that the Supplies Account increases on the debit side and decreases on the credit side.

On 1 February the account was $ 3080 and this was a debit since it was an existing balance.

Purchase during the year by Bonita Industries increased the Supplies Account. A debit entry of $2640 must be recorded.

Used supplies during the year decrease the Supplies Account. A credit entry of $3520 must be made

There for the balance left $2200(3080+2640-3520) is still on the increase side (debit).Hence the answer $2200 debit is correct.