Question

During the month of March, Harley's Computer Services made purchases on account totaling $45,900. Also during the month of March, Harley was paid $11,600 by a customer for services to be provided in the future and paid $38,100 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,500, what is the balance in accounts payable at the end of March

Answer 1

Answer:

$86,300 credit balance

Explanation:

                                                      accounts payable

                                                   debt                    credit

beginning balance March                                   $78,500

(purchases on account)                                       $45,900

(cash payments)                         $38,100                          

ending balance March                                         $86,300

Any money received in advance is considered a liability, deferred revenue, but is not part of accounts payables.