Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year. Accounts Payable relates solely to the purchase of merchandise. Sales on account were $532,100 and cost of goods sold was $358,000. The payments to suppliers for inventory during the period were:
A) $412,200
B) $322,200
C) $303,800
D) $393,800

Question

Quizplus · Accepted Answer

The payments to suppliers can be calculated as: Beginning Accounts Payable + Purchases - Ending Accounts Payable = Payments to Suppliers. Purchases = Cost of Goods Sold + Increase in Inventory = $358,000 + $45,000 = $403,000. Payments = $403,000 - $9,200 = $393,800.

Fertilizer Incorporated Reports an Increase in Accounts Payable of $9,200