Use the Following Information to Answer Questions Below

Use the following information to answer questions below
Horton's Donuts has 12 employees who are paid $18 per hour. The company purchases its inventory, on account, daily. At December 31, 2016, each of Horton's Donuts' employees had worked 20 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $74,880 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2016, the company had equipment totaling $1,440,000 which was depreciated at $144,000 per year. Prior to adjustments, the company's trial balance showed $205,680 in the wages expense account and $100,320 of inventory.
-If Horton's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31, 2016, balance sheet as accounts payable?

A) $0
B) $71,770
C) $38,995
D) $74,880