A Jensen Beach supplier credit account has a $85,000 limit, an open balance of $53,400, and a proposed order of $18,600. What credit remains after the order?
Correct Answer
A) $13,000
Available supplier credit after the order equals limit less open balance and the proposed order.
Why This Is the Correct Answer
Available supplier credit after the order equals limit less open balance and the proposed order.
Why the Other Options Are Wrong
Option B: $31,600
$31,600 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $66,400
$66,400 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $72,000
$72,000 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Supplier Credit drawer for Purchasing Clerk: label available before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Vendor Credit Accounts; confirm the administrative procedure and required supporting record.
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