Question

Corentine Co. had $167,000 of accounts payable on September 30 and $140,000 on October 31. Total purchases on account during October were $296,000.
Determine how much cash was paid on accounts payable during October.

Answer 1

Answer:

Total cash of $323,000 was paid during October.

Explanation:

The company had 167,000 accounts payable at the start of October after that they purchased a further 296,000 on account this means that their accounts payable during October were (296,000+167,000)= 463,000.

Now at the end of October they  have remaining accounts payable of 140,000 which means that they paid off the rest, so we will subtract 140,000 from 463,000 in order to find how much cash was paid.

463,000-140,000= 323,000.