Viewmont Manufacturing began the year owing its suppliers $4,800 for merchandise purchased last year.Viewmont then sold half of this merchandise for $8,000 on account.Two weeks later,Viewmont paid its suppliers $1,600 and bought another $6,400 of merchandise on account.Viewmont now has an Accounts Payable balance of:
A)$17,600.
B)$9,600.
C)$1,600.
D)$7,200.

Question

Quizplus · Accepted Answer

Ending Accounts Payable balance = Beginning Accounts Payable balance + Purchases on account − Payments on account
= $4,800 + $6,400 − $1,600 = $9,600
The sales on account do not affect Accounts Payable.

Viewmont Manufacturing Began the Year Owing Its Suppliers $4,800 for Merchandise