A Company's Inventory Account Increased $26,800 and Its Accounts Payable

question 36

Multiple Choice

A company's Inventory account increased $26,800 and its Accounts payable account decreased $18,240 during the year. The accounts payable relates only to the acquisition of inventory. Sales were $789,500 and Cost of goods sold was $532,700. What was the amount of payments to the supplier of inventory?

• A) $541,260
• B) $559,500
• C) $577,740
• D) $532,700

---

Definitions:

New Netherland

A 17th-century colonial province of the Dutch Republic that was located on the East Coast of North America, including parts of present-day New York, New Jersey, Delaware, and Connecticut.

Hudson River

A river in New York, known for its beauty and historical importance in commerce and art.

Franciscans

A religious order within the Catholic Church founded by St. Francis of Assisi in the 13th century, known for their commitment to poverty and living a simple lifestyle.

Jesuits

Members of the Society of Jesus, a Roman Catholic religious order founded in 1540 by Ignatius of Loyola, focused on education, missionary work, and theological scholarship.