Question

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Receivable is $3,200 The starting balance of Cash is $13,700 The starting balance of Inventory is $5,100 1. Buy $14 worth of manufacturing supplies for cash 2. Sell product for $35 in cash with historical cost of $35 3. Receive payment of $13 owed by a customer What is the final amount in Inventory?

Answer 1

• All working forms part of the answer
• Updation of T Accounts

Accounts Receivables
Beg Bal	$                                  3,200.00	(3) Cash	$                   13.00
End Bal	$                                  3,187.00
Cash
Beg Bal	$                                13,700.00	(1) Supplies	$                   14.00
(2) Sales revenue	$                                        35.00
(3) Accounts receivables	$                                        13.00
End Bal	$                                13,734.00
Inventory
Beg Bal	$                                  5,100.00	(2) Cost of Goods Sold	$                   35.00
End Bal	$                                  5,065.00 = ANSWER

• Answer: Final Amount In Inventory = $ 5,065 [5100 – 35]