A Weston supplier credit account has a $125,000 limit, an open balance of $79,000, and a proposed order of $31,200. What credit remains after the order?
Correct Answer
C) $14,800
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 A: $46,000
$46,000 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $93,800
$93,800 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $110,200
$110,200 is above the supported result for supplier credit control; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Available and limit live in different drawers; Purchasing Clerk tells which opens.
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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