Question

During the month of march, harley's computer services made purchases on account totaling $43,500. also during the month of march, harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. if the balance in the accounts payable account at the beginning of march was $77,300, what is the balance in accounts payable at the end of march?

Answer 1

The balance in Accounts Payable at the end of March is $83,900.

We follow the steps below in order to arrive at the answer:

Beginning Balance in Accounts payable account $77,300

Add: Purchases on account made during the month + $43,500

$1,20,800

Less: Cash paid on account payable balance - $36,900

Ending Balance in Accounts payable $83,900