Question

Accounts Payable had a balance of $18,310 at the beginning of the month. During the month, three debits in the amounts of $4,590, $11,190, and $14,690 were posted to Accounts Payable, and three credits in the amounts of $3,710, $9,610, and $12,810 were posted to Accounts Payable. What is the ending balance of the Accounts Payable account

Answer 1

Answer:

Closing balance of accounts payables                                     $ 13,970

Explanation:

Computation of Ending balance of accounts payable

The ending balance = Opening balance- Account Payables  + Credits (Accounts payables)- Debits (Accounts Payable)

Opening balance - Accounts Payable                                        $ 18,310

Add: Credits in account payable

( $3,710 + $ 9,610 + $ 12,810)                                                      $  26,130

Less: Debits in accounts payable

( $ 4,590 + $ 11,190 + $ 14,690)                                                   $ (30,470)

Closing balance in Accounts payables                                      $   13,970    

The normal balance of accounts payable which is a liability account is a credit, therefore further credits which are increasing liabilities are added and debits which are reductions are subtracted.