Based on the following transactions, what dollar amount would be reported as total expenses for the month of September using accrual accounting?

Sept. 1 Paid the August balance of wages payable, $325.

Sept. 12 Paid to have a flat tire fixed on the delivery truck, $25.

Sept. 19 Purchased 6 months' of office supplies on account, $175.

Sept. 30 Received the utility bill for September, to be paid on October 10th, $275.

Sept. 30 Employees earned, but were not paid wages for the last week of September, $450.

Sept. 30 A physical count of office supplies on hand was $125.

Answers:

A. $1,125

B. $350

C. $800 CORRECT

D. $525

Option B is the correct answer but please explain why

E. $400