Question

Below is one of the t-accounts ABC Inc. has. The Accounts Payable account has a beginning balance of $500. It was credited $400 and $200 during the period. It was debited by $800 and $25 during the period. Compute its account balance paying special attention to whether the balance ends up on the debit or credit side, and answer the question below. What is the account's balance?

Answer 1

Answer:

The account's balance is $275

Explanation:

Accounts Payable account's balance, according with the nature of the account that is  credit, you have to sum the credited movement it means that you have to sum $400 and $200, it gives a result of $1100, after of this, you have to subtract the debited movements $800 and $25, the result of the operation of $275 total that represents the account's balance.

Debit  Credit  

          500

        +400

        +200

-800  

-25  

=              $275