A company has a $26,329 debit balance in the payable accounts. Given this information, which of the following is a TRUE statement?
A)It is NOT normal for payable accounts to have a debit balance
B)Not enough information provided, since normal account balances are different for each company.
C)Payable accounts don't tend to run this high, so this is not a normal balance.
D)It is ALWAYS normal for payable accounts to have a debit balance.

Question

Quizplus · Accepted Answer

Payable accounts are liability accounts and typically have a credit balance. A debit balance in a payable account is not normal and may indicate an error or an unusual situation.

A Company Has a $26,329 Debit Balance in the Payable