If Accounts Payable has debit postings of $34,000,credit postings of $28,000,and a normal ending balance of $12,000,what was its beginning balance?
A) $18,000 Cr.
B) $6,000 Cr.
C) $18,000 Dr.
D) $6,000 Dr.

Question

Quizplus · Accepted Answer

Accounts Payable normally has a credit balance. To find the beginning balance, use the formula: Beginning Balance + Credit Postings - Debit Postings = Ending Balance. Let X be the beginning balance: X + $28,000 - $34,000 = $12,000. Solving for X gives X = $18,000 Cr.

If Accounts Payable Has Debit Postings of $34,000,credit Postings of $28,000,and