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6 October, 15:13

Acme Enterprises began the year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this merchandise for $5,000 on account. Two weeks later, Acme paid its suppliers $1,000 and bought another $4,000 of merchandise on account. Acme now has an Accounts Payable balance of:

A. S11,000.

B. S6,000

C. S1,000.

D. S4,500.

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  1. 6 October, 16:37
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    b, $6,000

    Explanation:

    Acme Enterprises owe $3,000 at the start of the year

    Acme sells half the merchandise for $5,000 then pays $1,000 from the $3,000 initially owed.

    this means that after paying $1,000 from the previous $3,000 debt, Acme enterprises now have a debt of $3,000 - $1,000 = $2,000

    After paying the $1,000, Acme enterprises bought another merchandise of $4,000.

    Having in mind the existing $2,000 debt from the first purchase, Acme Enterprises now has an account payable balance of $2,000 + $4,000 = $6,000.

    Cheers.
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