Question

During the month of March, Harley's Computer Services made purchases on account totaling $46,700. Also during the month of March, Harley was paid $12,800 by a customer for services to be provided in the future and paid $38,500 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,900, what is the balance in accounts payable at the end of March?

Answer 1

$87,100

Step-by-step explanation:

The calculation of balance in accounts payable is shown below:-

Balance in accounts payable = Beginning accounts payable + Purchases - Payments of accounts payable

= $78,900 + $46,700 - $38,500

= $125,600 - $38,500

= $87,100

So, for computing the balance in accounts payable we simply applied the above formula and here we will not consider the $12,800 as it is the nature of advance.