Tricky accrual accounting problem.Please help

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Zookie’s Shop, a proprietorship business, conducted the following transactions during the first week in March.

1. Purchased supplies for $1,800. Paid 20% down, remaining 80% to be paid in 10 days.
2. Paid $30 for newspaper advertising to appear this week.
3. Collected $1,400 from customers on account.
4. Performed services for a $1,620 charge to customers; however, cash payment is not due until next week.
5. Paid $600 rent for the month of March.
6. Performed services for $280 cash.
7. Paid part-time sales clerk $40 wages for the week.
8. Wrote a check for $100 to the owner for her personal use.
9. Consumed supplies of $1,400.



a) Compute the net income for the week, using the accrual method of accounting

According to me its a $670 loss,but the answer is a $170 loss.Also when answering this question,the book doesnt consider $1800 to be an expense.I dont understand ,why?,but it does consider $1400 to be supplies expense.Please clear this for me

Service Revenue ($1,620 + 280) -------------------> $1,900------------ A
Less:
Operating Expenses:
Supplies Expense $1,400(Why isn't it $1800)
Advertising Expense $30
Rent Expense $600
Wages Expense $40 Adding(1400+30+40+600)= 2070------------- B
Net Income/(Loss) (Accrual method)------------------------------> ($ 170)------------LOSS
 
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Fidget

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The $1800 is supplies for use in the performing of services, and since $1400 of that has been used (note 9) in the week, then that's the amount that goes in the accounts for the week. This is the accrual concept in action - it's basically matching revenue generated (the services provided) with the cost of generating that revenue (the cost of the supplies used and other expenses - wages etc).

So $1900 revenue was generated, and supplies that needed to be used cost $1400.

The interesting thing is that rent for the whole month is included in the answer, yet if the question is asking for net income just for the first week of March, then I would expect only one week's rent to be included rather than the whole month's.
 
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