At October 1, 2018, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2018, the accounts payable balance is
A) $25,000.
B) $41,000.
C) $55,000.
D) $121,000.

Question

Quizplus · Accepted Answer

The accounts payable balance is calculated as the beginning balance plus purchases on account minus payments on account: $40,000 + $33,000 - $48,000 = $25,000.

At October 1, 2018, Padilla Industries Had an Accounts Payable