Question

Accounts payable has a normal beginning balance of $1,000. During the period, there were debit postings of $600 and credit postings of $500. What was the ending balance?a. 900 debitb. 1,100 creditc. 900 creditd. 11,100 debit

Answer 1

Answer:

c. 900 credit

Explanation:

Account payable is a liability account and as such, the normal balance is in credit.

Opening balance = $1,000

Debit postings represents settlement of account payable.

Debit posting = $600

Credit postings are additions to the liability

Credit postings = $500

Ending balance = - $1,000 + $600 - $500

                          = -$900

Ending balance is a credit of $900. c. 900 credit