uring the month of March, Harley's Computer Services made purchases on account totaling $44,700. Also during the month of March, Harley was paid $9,800 by a customer for services to be provided in the future and paid $37,500 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,900, what is the balance in accounts payable at the end of March?

Question

Ivan

Business

6 August, 09:51

uring the month of March, Harley's Computer Services made purchases on account totaling $44,700. Also during the month of March, Harley was paid $9,800 by a customer for services to be provided in the future and paid $37,500 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,900, what is the balance in accounts payable at the end of March?

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Answers (1)

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Kenley · Answer 1

The correct answer is $85,100

Explanation:

"If the balance in the accounts payable account at the beginning of March was $77,900" "During the month of March, Harley's Computer Services made purchases on account totaling $44,700"

$77,900 + $44,700 = $122,600

"Harley was paid $9,800 by a customer for services to be provided in the future and paid $37,500 of cash on its accounts payable balance"

*The $9,800 would not be included because this is a unearned revenue and while it is a liability, it does not classify as accounts payable. So just the $37,500 would be debited.

$122,600 - $37,500 = $85,100

The ending balance for March would be $85,100.