Question

Accounts payable has a normal balance of 134,000. The company makes a payment of 7,000 towards its balance due. After the payment is recorded, the balance in accounts payable will be?

1) 127,000
2) 134,000
3) 141,000
4) cannot be determined

Answer 1

I think it's 127,000

Step-by-step explanation:

I think they are paying it off so it's minus

Answer 2

The balance in accounts payable after the payment is recorded will be $127,000.

Step-by-step explanation:

The balance in accounts payable after the payment is recorded will be $127,000.

Accounts payable is a liability account that represents the amount owed by a company to its suppliers or creditors for goods or services received.

Since the normal balance of accounts payable is a credit balance, when a payment of $7,000 is made towards the balance due, the overall balance in the accounts payable account will be reduced by $7,000. Therefore, the new balance in accounts payable will be $134,000 - $7,000 = $127,000.