Jenny’s Sweets’s Accounts Payable balance on the April 30th trial balance is $27,000. On May 30th Jenny paid invoices totaling $10,000 and invoiced customers for a total of $8,000. What is the balance of Jenny’s accounts payable account on their May 31st trial balance?

Answer: $17,000

Explanation:

Accounts Payable is a type of liability that reflects the amount that the company owes to suppliers and creditors for services already rendered. These services have already occurred and were thus done on credit.

Jenny paid $10,000 of this balance out, which decreases this overall balance:

27 000 - 10 000 = $ 17, 000.

The $8,000 invoiced to customers has no effect on Accounts Payable. This is because this $8,000 figure represents sales that were made on credit by customers, and not purchases made by the company. As a result, this figure goes to the Accounts Receivable balance, which is an asset, as this is cash that still needs to be received for services rendered by Jenny's Sweets.

Therefor the balance on 31 May in the Accounts Payable section is $17,000.