The Production Budget Shows Expected Unit Sales Are 1,800 $\begin{array}{l}\underline{\text { Beginning Units} } & \underline{\text { Ending Units }} \\\end{array}$

question 7

Short Answer

The production budget shows expected unit sales are 1,800.The required production units are 1,700.Which of the following represents possible inventory balances? $\begin{array}{l}\underline{\text { Beginning Units} } & \underline{\text { Ending Units }} \\\end{array}$

a) $\quad$$\quad$$\quad$ 200 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 100
b) $\quad$$\quad$$\quad$ 100 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 200
c) $\quad$$\quad$$\quad$ 200 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 200
d) $\quad$$\quad$$\quad$$\quad$ 0 $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 100

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Definitions:

Notes Receivable

Short-term or long-term financial assets representing the promise of another party to pay a specific sum of money at a future date.

Journal Entry

A record in accounting that notes every transaction a business makes, providing a chronological log necessary for the financial statements.

Promissory Note

A written, legal agreement where one party promises to pay another a specific sum of money on a certain date or upon demand.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.