Oleander Company paid $22,000 for goods it had purchased last month on account.What is the effect of the payment?
A)a decrease in inventory
B)a decrease in accounts payable
C)an increase in cost of goods sold
D)an increase in inventory

Question

Quizplus · Accepted Answer

The payment of $22,000 will decrease the accounts payable balance, as it represents a reduction in the amount owed to the supplier for the goods purchased on credit. It does not affect inventory or cost of goods sold.

Oleander Company Paid $22,000 for Goods It Had Purchased Last