Hannibal Company's Accounts Payable account had a balance of $7,400 on September 1, 2019, and a balance of $9,000 on September 30, 2019. During September 2019, the company made total payments of $65,600 on accounts payables.
What must have been their total purchases on account during September 2019.
A) $74,600
B) $58,200
C) $67,200
D) $64,000

Question

Quizplus · Accepted Answer

Beginning A/P balance + Sales on account - Customer payments = Ending A/P balance
$7,400 + X - $65,600 = $9,000
X = $9,000 - $7,400 + $65,600
X = $67,200

Hannibal Company's Accounts Payable Account Had a Balance of $7,400