Question

At March 1, 2017, Candy Inc. had supplies on hand of $2,000. During the month, Candy purchased supplies of $2,900 and used supplies of $2,800. The March 31 balance sheet should report what balance in the supplies account?

Answer 1

Answer:

The March 31st balance sheet should have $2100.

Explanation:

Candy Inc. had $2000 of supplies on hand. They purchased $2900 more.

Therefore at this time, Candy Inc. had a total of $4900 supplies.  See below.

Total amount of supplies = supplies on hand + supplies purchased

Total amount of supplies = $2000+$2900

Total amount of supplies= $4900

They used $2800 in March. Therefore, the March 31st balance sheet should have $2100.

Balance=total amount of supplies-supplies used

Balance=$4900-$2800

Balance=$2100