Question

RV Wholesale Inc. paid $1200 for supplies and purchased additional supplies on account for $1000. RV Wholesale also paid $200 of the accounts payable. What is the balance in the supplies account?

a) $2000
b) $1000
c) $1200
d) $2200

Answer 1

The balance in the supplies account is $2000.

Step-by-step explanation:

The balance in the supplies account can be calculated by adding the initial payment for supplies ($1200) and the purchases on account ($1000), then subtracting the payment made on the accounts payable ($200). This would give us a total of $1200 + $1000 - $200 = $2000. Therefore, the balance in the supplies account is $2000.