Question

Merchandise Inventory increased $ 28 comma 000 and Accounts Payable decreased $ 19 comma 600 during the year. Accounts Payable relates only to the acquisition of merchandise inventory. Sales were $ 795 comma 500 and Cost of Goods Sold was $ 549 comma 500. Compute the payment made to the suppliers for inventory.

Answer 1

Answer:

The payment made to the suppliers for inventory is $55,7900

Explanation:

The equation is shown below, for computing the payment made to the supplier for inventory:

Payment made = Cost of Good sold + increase in inventory - Decrease in account payable

= $549,500 + $28,000 - $19,600

= $55,7900

Since we have to calculate the supplier payment, so the sale part does not play any role while computing the supplier payment for inventory.

Hence, the payment made to the suppliers for inventory is $55,7900