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16 January, 16:14

The Accounts Payable account has a beginning balance of $15,000 and the company purchased $40,000 of supplies on account during the month. The ending balance was $20,000. How much did the company pay to creditors during the month?

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  1. 16 January, 16:25
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    The payments to creditors during the month were of $35000.

    Explanation:

    To calculate the payment to the creditors, we first need to find out the total amount that was due to the creditors for the month and then deduct the ending balance from that amount to determine the payments made to creditors. The total amount that was due to creditors for the month was,

    Accounts Payable amount due for the month = Opening balance of Accounts Payable + Purchases on credit

    Accounts Payable amount due = 15000 + 40000 = $55000

    The payments for the month = 55000 - 20000 = $35000
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