The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of supplies on credit,$4,200;receipt of a bill for utilities for the month which is due on the 15th of the next month,$1,200;and,partial payment on the balance due for supplies,$800.What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0,and is the balance a debit or a credit?
A)$4,600 debit.
B)$4,600 credit.
C)$3,400 credit.
D)$5,400 credit.

Question

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The balance in the Accounts Payable account at the end of the month is $4,600 credit. This is calculated by adding the purchase of supplies on credit ($4,200) and the bill for utilities ($1,200), which totals $5,400, and then subtracting the partial payment made for supplies ($800), resulting in a balance of $4,600. Accounts Payable is a liability account, so an increase is recorded as a credit.

The Controller for Tires and More,Inc