I dont understand why it says "these supplies would have cost $1,875 if purchased under normal circumstances".

Do these $1,875 go anywhere on the balance sheet? Why is that included in the question?

Until now im guessing just need to add $18,000 to accounts payable and subtract $1,000 from cash. Is that all?

Thank you in advance,

Best,

Riccardo

Oct. 6 More furniture was purchased on account at a cost of $18,000, to be paid within 30 days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $ 1.875 if purchased under normal circumstances