Question

This fact pattern provides information needed to answer Q#17-Q#21. Year 1 Transactions: On May 31, Year 1, Merle bought $14,000 of supplies on account on the day the firm was founded. This was the only purchase of supplies in Year 1. Later in Year 1, the firm returned defective supplies valued at $4,000 to the supplier. The cost of the supplies returned was deducted from Merle's account payable. At the end of Year 1, Merle's employees conducted a physical count of supplies on hand determining the remaining supplies to be worth $2,000. On December 31, Year 1, Merle made payments to the firm's suppliers for Click Save and Submit to save and submit. Click Save All Answers to save all answers Save Al so 888 * $ 4 % 5 & 7 & 옥 a 8 E R T Y U 1 o D F H J K C V B N M

19

Answer 1

Purchase 1Year: 14000

Less 4000 return

Remaining amount due on Merie = 10000

Made payment of 80%

80/100* 10000= 8000

Merie Paid to Supplier in 1 year= 8000.

ANSWER:8000