On January 1, 20X2, the Ledger of Global Corporation Correctly

question 136

Multiple Choice

On January 1, 20X2, the ledger of Global Corporation correctly showed supplies inventory of $500. During 20X2, supplies purchases amounted to $700. A count (inventory) of supplies on hand at December 31, 20X2, showed $400. The 20X2 statement of earnings should report supplies expense amounting to which of the following?

• A) $700.
• B) $800.
• C) $1,100.
• D) $1,200.

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Definitions:

Identification

The process of recognizing or establishing the identity of a person or thing.

Contract for Sale

A legal agreement between a buyer and seller regarding the exchange of goods, services, or property for payment or promise of payment.

Sources of Law

The origins from which laws are derived, including constitutions, statutes, regulations, and court decisions.

Sales Contracts

Legal agreements that define the terms of sale of goods or services from a seller to a buyer.