At October 1, 2010, Padilla Industries had an accounts payable balance of $30,000. During the month, the company made purchases on account of $25,000 and made payments on account of $40,000. At October 31, 2010, the accounts payable balance is
A) $30,000.
B) $10,000.
C) $15,000.
D) $40,000. [

Question

Quizplus · Accepted Answer

Beginning balance of accounts payable = $30,000
Purchases on account = $25,000
Payments made on account = $40,000

To find the ending balance of Accounts Payable, we have to subtract payments made on account from beginning balance and add new purchases.

Ending balance of accounts payable = Beginning balance + Purchases on account - Payments made on account
= $30,000 + $25,000 - $40,000
= $15,000

Therefore, the correct answer is C) $15,000.

At October 1, 2010, Padilla Industries Had an Accounts Payable