The Accounts Payable Account of Waterford,Inc

question 30

Multiple Choice

The Accounts Payable account of Waterford,Inc.has the following postings:

Calculate the ending balance of the account.

• A)$12,000 credit
• B)$14,000 debit
• C)$14,000 credit
• D)$8,000 debit

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Definitions:

Invoice Date

The date when an invoice is issued, marking the beginning of the grace period for payment.

Partial Payment

A payment made that is not the full amount due but is accepted as a partial settlement of the total debt.

Cash Discount

A reduction in the price of an item or service provided by the seller to the buyer for prompt payment.

Partial Payment

A payment made that is not the full amount due on a debt, bill, or other financial obligation.