Lipsey Company's Accounts Payable account had a balance of $3,700 on September 1, and a balance of $4,500 on September 30. During September, the company made total payments of $32,800 on accounts payables.
What must have been their total purchases on account during September?
A) $33,600
B) $32,000
C) $37,300
D) $29,100

Question

Quizplus · Accepted Answer

To find the total purchases on account, use the formula: Ending Balance = Beginning Balance + Purchases - Payments. Rearranging gives Purchases = Ending Balance - Beginning Balance + Payments. Substituting the given values: $4,500 - $3,700 + $32,800 = $33,600.

Lipsey Company's Accounts Payable Account Had a Balance of $3,700