Carter United has annual sales of $509 000 and cost of goods sold of $267 000.The profit margin is 4 per cent and the accounts payable period is 32 days.What is the average accounts payable balance?

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Quizplus · Accepted Answer

The average accounts payable balance is calculated as follows:Average accounts payable balance = (Cost of goods sold / 365 days) x Accounts payable period= ($267,000 / 365 days) x 32 days= $23,408.22

Carter United Has Annual Sales of $509 000 and Cost