Accounts Payable had a balance of $18,220 at the beginning of the month. During the month, three debits in the amounts of $4,680, $11,280, and $14,780 were posted to Accounts Payable, and three credits in the amounts of $3,620, $9,520, and $12,720 were posted to Accounts Payable. What is the ending balance of the Accounts Payable account?

Question

Tanya Roach

Business

22 July, 07:14

Accounts Payable had a balance of $18,220 at the beginning of the month. During the month, three debits in the amounts of $4,680, $11,280, and $14,780 were posted to Accounts Payable, and three credits in the amounts of $3,620, $9,520, and $12,720 were posted to Accounts Payable. What is the ending balance of the Accounts Payable account?

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Answers (1)

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Duncan · Answer 1

The answer is $13,340

Explanation:

For accounts payable account, debit reduces it while credit increases. It is so because accounts payable is a current liability.

Opening balance is always in credit side.

So, to find the ending balance:

we add all the credit side including the beginning balance:

$18,220 + $3,620 + $9,520 +

$12,720 = $44,080

And add all the debit side too and substract the total from $44,080

$4,680 + $11,280 + $14,780

=$30,740

Therefore, ending balance of the Accounts Payable account is:

$44,080 - $30,740

=$13,340