Viewmont Manufacturing began the year owing its suppliers $4,800 for merchandise purchased last year. Viewmont then sold half of this merchandise for $8,000 on account. Two weeks later, Viewmont paid its suppliers $1,600 and bought another $6,400 of merchandise on account. Viewmont now has an Accounts Payable balance of:

Question

Business

Hank

20 May, 23:53

Viewmont Manufacturing began the year owing its suppliers $4,800 for merchandise purchased last year. Viewmont then sold half of this merchandise for $8,000 on account. Two weeks later, Viewmont paid its suppliers $1,600 and bought another $6,400 of merchandise on account. Viewmont now has an Accounts Payable balance of:

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Thornton · Answer 1

The Viewmont now has an Accounts Payable balance of $9,600 in the books of accounts.

Explanation:

Accounts Payable : The accounts payable is shown in the balance sheet under current liabilities as it is for short period of time like - less than one year.

The balance of accounts payable is shown below:

= Last year purchase - paid amount + another purchase

= $4,800 - $1,600 + $6,400

= $9,600

The half of the sale of the merchandise amount is not related to the accounts payable. That's why it is not being considered in the computation part.

Hence, the Viewmont now has an Accounts Payable balance of $9,600 in the books of accounts.