On May 31,Don Company had an Accounts Payable balance of $57,000.During the month of June,total credits to Accounts Payable were $34,000,which resulted from purchases on credit.The June 30 Accounts Payable balance was $32,000.What was the amount of payments made during June?
A) $32,000.
B) $34,000.
C) $57,000.
D) $59,000.
E) $84,000.

Question

Quizplus · Accepted Answer

To find the amount of payments made during June, we need to calculate the change in the Accounts Payable balance by adding the credits (purchases) and subtracting the payments.

Change in Accounts Payable = June 30 balance - May 31 balance 
Change in Accounts Payable = $32,000 - $57,000 
Change in Accounts Payable = -$25,000

Since the change is negative, it means that payments were made. We just need to find the amount of payments:

Amount of payments = total credits - change in Accounts Payable 
Amount of payments = $34,000 - (-$25,000) 
Amount of payments = $59,000

Therefore, the amount of payments made during June was $59,000, which is answer choice D.

On May 31,Don Company Had an Accounts Payable Balance of $57,000.During