Question

Acme Enterprises began the year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this merchandise for $5,000 on account. Two weeks later, Acme paid its suppliers $1,000 and bought another $4,000 of merchandise on account. Acme now has an Accounts Payable balance of:
A. S11,000.

B. S6,000

C. S1,000.

D. S4,500.

Answer 1

Answer:

b, $6,000

Explanation:

Acme Enterprises owe $3,000 at the start of the year

Acme sells half the merchandise for $5,000 then pays $1,000 from the $3,000 initially owed.

this means that after paying $1,000 from the previous $3,000 debt, Acme enterprises now have a debt of $3,000 - $1,000 = $2,000

After paying the $1,000, Acme enterprises bought another merchandise of $4,000.

Having in mind the existing $2,000 debt from the first purchase, Acme Enterprises now has an account payable balance of $2,000 + $4,000 = $6,000.

Cheers.