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Jones, Inc., a calendar-year taxpayer, is in the air conditioner repair business. The business uses...

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Accounting

Jones, Inc., a calendar-year taxpayer, is in the air conditioner repair business. The business uses the cash method. In December of the current year, Jones charged $100 of supplies at Refrigeration, Inc., (he will pay the credit card bill in January) and also purchased $600 of supplies at XYZ on open account (he will make a payment on the open account in January). What is the amount that is deductible by Jones, Inc., in the current year? (Points : 4)

$100 $600 $700 The amounts must be capitalized and charged to expense as used.

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