The Buddy Burger Corporation owes $1.5 million to the Alberta Wholesale Meat Company from whom Buddy Burger buys its burger meat.Which account would Buddy Burger use to report the amount owed?

Question

Quizplus · Accepted Answer

Accounts Payable is the correct account because it represents the amount owed to a supplier for goods or services received on credit. The other options do not correctly represent the situation described. Deferred Revenue is for prepaid amounts received from customers, Supplies is for the items Buddy Burger purchases for use in operations, and Accounts Receivable is for money owed to Buddy Burger by its customers.

The Buddy Burger Corporation Owes $1