Question

Wolf Pack Deli purchased $2,400 of supplies for cash. A month later Wolf Pack Deli purchased additional supplies on account for $2,000. Wolf Pack Deli also paid $400 of the accounts payable. What is the balance in the Supplies account?

Answer 1

$4,400

Step-by-step explanation:

Supplies is a kind of inventory held, to be used in the process of manufacturing.

As for the information provided,

The supplies purchased = $2,400 + $2,000 = $4,400

The information provided for the amount paid of 4400 to accounts payable, is not related as that is different liability which when paid will reduce the liability and cash, but will not impact supplies.

Therefore, balance of supplies = $4,400