Question

On March 3, Cobra Inc. purchased a desk for $440 on account. On March 22, Cobra purchased another desk for $585 also on account, and then on March 24, Cobra paid $600 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:

desks = 1,025

Explanation:

 440

+585

1,025

Notice:

We should add the cost of the two desk to get the total amount.

The debt or account payable at the moment doesn't reduce the valuation fo the desk.

The depreciation will. But we are not given with any numebr to calculate this, so we should ignore it for this assingment.