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12 May, 03:07

Accounts Payable had a balance of $18,310 at the beginning of the month. During the month, three debits in the amounts of $4,590, $11,190, and $14,690 were posted to Accounts Payable, and three credits in the amounts of $3,710, $9,610, and $12,810 were posted to Accounts Payable. What is the ending balance of the Accounts Payable account

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  1. 12 May, 03:14
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    Closing balance of accounts payables $ 13,970

    Explanation:

    Computation of Ending balance of accounts payable

    The ending balance = Opening balance - Account Payables + Credits (Accounts payables) - Debits (Accounts Payable)

    Opening balance - Accounts Payable $ 18,310

    Add: Credits in account payable

    ($3,710 + $ 9,610 + $ 12,810) $ 26,130

    Less: Debits in accounts payable

    ($ 4,590 + $ 11,190 + $ 14,690) $ (30,470)

    Closing balance in Accounts payables $ 13,970

    The normal balance of accounts payable which is a liability account is a credit, therefore further credits which are increasing liabilities are added and debits which are reductions are subtracted.
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