Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year.Accounts Payable relates solely to the purchase of merchandise.Sales on account were $532,100 and cost of goods sold was $358,000.The payments to suppliers for inventory during the period were:
A) $393,800
B) $322,200
C) $412,200
D) $303,800

Question

Quizplus · Accepted Answer

The payments to suppliers can be calculated as: Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory. Purchases = Cost of Goods Sold + Increase in Inventory - Increase in Accounts Payable = $358,000 + $45,000 - $9,200 = $393,800.

Fertilizer Incorporated Reports an Increase in Accounts Payable of $9,200