Question

During the month of March, Harley's Computer Services made purchases on account totaling $47,500. Also during the month of March, Harley was paid $14,000 by a customer for services to be provided in the future and paid $38,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $79,300, what is the balance in accounts payable at the end of March

Answer 1

The balance in accounts payable at the end of March is $87,900

Step-by-step explanation:

Accounts payable account shows the balance of the money owed by the business to the suppliers or service providers of the business against which the business received materials, products or services which is not paid at the time of receipt.

We can calculate the End of mArch balance of accounts payable of Harley's Computer Services as follow

Ending Balance = Beginning Balance + Purchases made during March - Payment Made during March

Where

Begining balance = $79,300

Purchases made during March = $47,500

Payment Made during March = $38,900

Pacing values in the formula

Ending Balance = $79,300 + $47,500 - $38,900

Ending Balance = $87,900

The payment of $14,000 made for the future services to be received. It will be classified as prepaid and advances.