At October 1, 2017, Metz Industries Had an Accounts Payable

question 67

Multiple Choice

At October 1, 2017, Metz Industries 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, 2017, the Accounts Payable balance is

• A)$140,000 debit
• B)$20,000 credit
• C)$80,000 credit
• D)$160,000 credit

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Definitions:

Written Contract

A legally binding agreement between two or more parties that is expressed in written form.

Cover the Sale

A financial term referring to a transaction in which an investor purchases securities to close or cover a previously established short position.

Perishable Goods

Items that deteriorate quickly if not stored under proper conditions, such as fresh food or flowers.

Tomatoes

Edible, often red, fruit of the plant Solanum lycopersicum, commonly used in cooking.