Question

During the month of March, Harley's Computer Services made purchases on account totaling $44,900. Also during the month of March, Harley was paid $10,100 by a customer for services to be provided in the future and paid $37,600 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,000, what is the balance in accounts payable at the end of March?

Answer 1

Answer:

$85,300

Explanation:

The computation of the ending account payable balance is shown below:

Ending balance of account payable = Beginning balance of account payable +  purchase made - paid amount of its account payable balance

= $78,000 + $44,900 - $37,600

= $85,300

The paid amount for services to be provided in the future is not related to the account payable. Hence, it is ignored