Accounts Payable Had a Normal Starting Balance of $500

question 45

Multiple Choice

Accounts Payable had a normal starting balance of $500.There were debit postings of $200 and credit postings of $100 during the month.The ending balance is:

• A)$400 credit.
• B)$800 debit.
• C)$400 debit.
• D)$800 credit.

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Definitions:

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date.

Gross Profit

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products or services.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.