Question

During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balance of Accounts Payable was $32,310, determine the account balance on February 1.

Answer 1

Answer:

$45,000

Explanation:

Given the above information, the account balance on February 1 is computed below;

Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account

= $59,900 + $186,500 - $201,400

= $45,000

Therefore, the account balance on February 1 is $45,000