Question

On March 3, ABC purchased a desk for $450 on account. On March 22, ABC purchased another desk for $500 also on account, and then on March 24, ABC paid $400 on account. At the end of March, what amount should ABC report for desks (assuming these two desks were the only desks had)?
A) $950.
B) S50
C) $450.
D) S500

Answer 1

Answer:

$950

Explanation:

March 3  Purchase Debit desk$450 Credit payable $450

March 22 Purchase  Debit Desk  $500 Credit payable

March 24 (Payment )  Credit cash $400 debit payable $400

Total desk purchased = $450 + $500= $950

Answer 2

Answer:

A. $950

Explanation:

Proper documentations of payments, purchases and income in any company is very necessary for growth.

From the question, the following transaction occured:

1. March 3 => a desk was purchased for $450
2. March 22 => another desk was purchased for $500
3. March 24 => $400 was paid on account.

To know the amount that ABC should report for desks, the two transaction for desk should be summed and the result will be the amount that should be recorded.

Therefore,

$450 + $500 = $950.