at october 1, 202x, a company had an accounts payable balance of $140,000. during the month, the company…

at october 1, 202x, a company had an accounts payable balance of $140,000. during the month, the company made purchases on account of $100,000 and made payments on account of $160,000. at october 31, 202x, the accounts payable balance is - select answer from the options below.\na $80,000 credit.\nb $160,000 credit.\nc $140,000 debit.\nd $20,000 credit.

at october 1, 202x, a company had an accounts payable balance of $140,000. during the month, the company made purchases on account of $100,000 and made payments on account of $160,000. at october 31, 202x, the accounts payable balance is - select answer from the options below.\na $80,000 credit.\nb $160,000 credit.\nc $140,000 debit.\nd $20,000 credit.

Answer

Explanation:

Step1: Recall accounts payable formula

Ending balance = Beginning balance + Purchases on account - Payments on account

Step2: Substitute given values

Beginning balance = $140000$, Purchases on account = $100000$, Payments on account = $160000$. So, Ending balance=$140000 + 100000-160000$.

Step3: Calculate the ending balance

$140000+100000 - 160000=80000$. Accounts payable is a liability account, and liability accounts have credit balances.

Answer:

A. $80,000 credit