Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the

Question

Nesterboy [21]

2 years ago

7

Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the

month. The ending balance is a
A. $500 credit.

B. $1,000 debit.

C. $500 debit.

D. $1,000 credit

Mathematics

1 answer:

sasho [114] · Answer 1 · 2022-08-18T14:14:54+03:00

The normal balance of an accounts payable is credit.
So you start with $800-cr
Any debit posting will reduce that normal balance and any credit posting will increase the normal balance.

The $600 debit posting will create a $200 credit balance(800-600)

The $300 credit posting will create a $500 credit balance(300+200)

Answer: A. $500 - Credit.

It may help to figure it out if you create a t-chart and enter the amounts.