Sheldon Company Began Year 1 with $1,900 in Its Supplies

Multiple Choice

Sheldon Company began Year 1 with $1,900 in its supplies account. During the year, the company purchased $5,600 of supplies on account. The company paid $2,800 on accounts payable by year end. At the end of Year 1, Sheldon counted $3,300 of supplies on hand. Sheldon's financial statements for Year 1 would show:

A) $4,700 of supplies; $5,600 of supplies expense
B) $3,300 of supplies; $4,200 of supplies expense
C) $3,300 of supplies; $2,300 of supplies expense
D) $4,700 of supplies; $1,400 of supplies expense