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9 June, 01:23

Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310. What amount should appear on the company's March 31 balance sheet as Supplies, and what amount should appear on the company's March income statement as Supplies Expense, respectively? Select one: a. $310, $5,350 b. $310, $5,040 c. $350, $5,040 d. $350, $5,000 e. $310, $5,000

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  1. 9 June, 01:41
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    Option (b) is correct.

    Explanation:

    Given that,

    During March, office supplies purchased on account = $5,000

    On March 1, the balance in the supplies account = $350

    On March 31, supplies on hand = $310

    Therefore,

    $310 should appear on the company's March 31 balance sheet as Supplies.

    Company's March income statement as Supplies Expense:

    = Supplies, as on March 1 + Purchases - Supplies, as on March 31

    = $350 + $5,000 - $310

    = $5,040
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