Question

In 2017, the City ordered supplies that cost 4M, received supplies that cost 3.5M, paid for supplies that cost 3M and used supplies that cost 3.3M: Record consumption of supplies.

Answer 1

To record the consumption of supplies, subtract the value of supplies used from the value of supplies received and subtract the value of supplies paid for from the net supplies. If the result is negative, it indicates a deficit that can be recorded as a loss.

Step-by-step explanation:

Recording the consumption of supplies involves keeping track of the supplies that were used during a specific period. In this case, we are concerned with the supplies used in 2017. To record the consumption of supplies, we need to subtract the value of the supplies used from the value of the supplies received.

First, we calculate the net supplies by subtracting the value of supplies used (3.3M) from the value of supplies received (3.5M): 3.5M - 3.3M = 0.2M.

Then, we subtract the value of supplies paid for (3M) from the net supplies: 0.2M - 3M = -2.8M.

Since the result is negative, it means that there was a deficit in the supplies consumed. This deficit can be recorded as a loss in the books.