Use the Information for the Question(s)below

question 10

Multiple Choice

Use the information for the question(s) below. As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
-Assuming you currently have 10,000 Bbls of WTI crude,the added benefit (cost) to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to:

• A)($1400).
• B)$1400.
• C)($3908).
• D)$3908.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains account information to support the main general ledger accounts.

Adjustment For Supplies

An accounting entry made to account for the change in the supplies' value over a certain period, ensuring the correct expense is recognized.

Recorded The Adjustment

The process of making entries to correct accounts or to account for transactions that have been missed in the financial records.

Subsidiary Ledger

A detailed ledger that supports and breaks down the information summarized in a general ledger.