At October 1, 2014, Metz Industries had an Accounts Payable balance of $70,000. During the month, the company made purchases on account of $50,000 and made payments on account of $80,000. At October 31, 2014, the Accounts Payable balance is
A) $70,000 debit
B) $10,000 credit
C) $40,000 credit
D) $80,000 credit

Question

Quizplus · Accepted Answer

The beginning balance was $70,000. Purchases increased the balance by $50,000, and payments decreased it by $80,000. Thus, the ending balance is $70,000 + $50,000 - $80,000 = $40,000 credit.

At October 1, 2014, Metz Industries Had an Accounts Payable