The Accounts Payable account has a beginning balance of $12,000 and the company purchased $50,000 of supplies on account during the month.The ending balance was $10,000.How much did the company pay to creditors during the month?

Question

Quizplus · Accepted Answer

The company purchased $50,000 of supplies on account during the month, so the total amount owed to creditors increased by $50,000. The beginning balance of Accounts Payable was $12,000, so the total amount owed to creditors was $12,000 + $50,000 = $62,000.

The ending balance of the Accounts Payable account was $10,000, which means that the company paid $62,000 - $10,000 = $52,000 to creditors during the month. Therefore, the correct answer is B.

The Accounts Payable Account Has a Beginning Balance of $12,000