Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n)

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The money owed to the supplier for inventory purchased on credit is recorded as an account payable on the balance sheet until it is paid off within 60 days. This is classified as a current liability because it is expected to be paid off in the short term.

Extreme Sports, a Bicycle, ATV, and Motorbike Retailer, Buys Its