At October 1, 2017, Metz Industries had an Accounts Payable balance of $140,000. During the month, the company made purchases on account of $100,000 and made payments on account of $160,000. At October 31, 2017, the Accounts Payable balance is
A)$140,000 debit
B)$20,000 credit
C)$80,000 credit
D)$160,000 credit

Question

Quizplus · Accepted Answer

Starting balance: $140,000 debit
Purchases on account: $100,000 increase (credit)
Payments on account: $160,000 decrease (debit)

To find the ending balance, we need to add the starting balance, purchases on account, and subtract the payments on account:

$140,000 (starting balance) + $100,000 (purchases on account) - $160,000 (payments on account) = $80,000 credit

Therefore, the correct answer is C.

At October 1, 2017, Metz Industries Had an Accounts Payable