Rabbit Company's Accounts Payable account had a balance of $22,200 on September 1, 2019, and a balance of $27,000 on September 30, 2019. During September 2019, the company made total payments of $196,800 on accounts payables.
What must have been their total purchases on account during September 2019.
A) $192,000
B) $223,800
C) $174,600
D) $201,600

Question

Quizplus · Accepted Answer

Beginning A/P balance + Purchases - Payments = Ending A/P balance
$22,200 + X - $196,800 = $27,000
X = $27,000 - $22,200 + $196,800
X = $201,600

Rabbit Company's Accounts Payable Account Had a Balance of $22,200