a. Accounts Payable had a balance of $3,000 at the beginning of the month and $3,400 at

Question:

a. Accounts Payable had a balance of $3,000 at the beginning of the month and $3,400 at the end of the month. During the month, purchases on account amounted to $6,100. Calculate the payments to suppliers during the month.

b. Accounts Receivable had a balance of $21,400 at the beginning of the month and $19,800 at the end of the month. Cash collected from customers totaled $76,000 during the month. Calculate credit sales during the month, assuming that all sales were made on account.

Required:

Solve for the missing amounts using a T-account for the balance sheet accounts in each situation. Assume that there is only one debit entry and one credit entry in the account during the month.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...