during december, camp david inc. purchased $5,000 of supplies for use in its business. at the end of…

during december, camp david inc. purchased $5,000 of supplies for use in its business. at the end of december, 20% of the supplies were still on hand, but only 70% had been paid. what amounts will appear on the companys balance sheet on december 31? supplies on hand accounts payable a $1,000 $5,000 b $4,000 $1,500 c $1,000 $1,500 d $5,000 $3,500

during december, camp david inc. purchased $5,000 of supplies for use in its business. at the end of december, 20% of the supplies were still on hand, but only 70% had been paid. what amounts will appear on the companys balance sheet on december 31? supplies on hand accounts payable a $1,000 $5,000 b $4,000 $1,500 c $1,000 $1,500 d $5,000 $3,500

Answer

Explanation:

Step1: Calculate supplies on hand

The company purchased $5,000$ of supplies and 20% were still on - hand. So the amount of supplies on hand is $5000\times0.2 = 1000$.

Step2: Calculate accounts payable

The company purchased $5,000$ of supplies and 70% had been paid. So the percentage of unpaid supplies is $1 - 0.7=0.3$. The amount of accounts payable is $5000\times0.3 = 1500$.

Answer:

C. $1,000$, $1,500$