The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250,increase of $525,decrease of $175,and an increase of $300.The final balance is a:
A)credit balance of $900.
B)debit balance of $900.
C)credit balance of $1,250.
D)debit balance of $1,250.

Question

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Accounts Payable is a liability account, which normally has a credit balance. Starting from zero, the increases (credits) total $1,075 ($250 + $525 + $300) and the decrease (debit) is $175. The final balance is a credit balance of $900 ($1,075 - $175).

The Account "Accounts Payable" Began with a Zero Balance and Then