The Accounts Payable account has a $3,000 credit balance. An entry for the payment of $1,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is:

Question

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When a payment of $1,000 is made on an account with a $3,000 credit balance, the payment reduces the credit balance. Therefore, the new balance is a $2,000 credit balance.

The Accounts Payable Account Has a $3,000 Credit Balance