The Healey Company began the period with $950 in the office supplies account. During the year, Healey acquired $1,200 of supplies for cash. At the end of the year, the company determined that there was $500 of supplies on hand. The amounts of expense and cash outflow to be reported on Healey’s financial statements are
A. $850 $1200
B. $850 $1550
C. $1500 $1200
D. $1650 $1200
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