A creditor's account in the accounts payable ledger has a balance of $10,560 as of April 1. After a transaction of $12,800 is posted from the purchases journal and a transaction of $9,200 is posted from the cash payments journal, the balance of the creditor's account on April 30 is:
A)$14,160 credit
B)$9,200 debit
C)$12,800 debit
D)$6,960 credit

Question

Quizplus · Accepted Answer

The initial balance is a credit of $10,560. Adding a purchase of $12,800 increases the credit balance to $23,360. Paying $9,200 reduces the credit balance to $14,160.

A Creditor's Account in the Accounts Payable Ledger Has a Balance