Cost of merchandise sold reported on the income statement was $420,000 The accounts payable balance decreased $22,500, and the inventory balance decreased by $26,000 over the year Determine the amount of cash paid for merchandise ...

Cost of merchandise sold Ded ...

Cost of merchandise sold reported on the income statement was $420,000. The accounts payable balance decreased $22,500,

Question:

Cost of merchandise sold reported on the income statement was $420,000. The balance decreased $22,500, and the inventory balance decreased by $26,000 over the year. Determine the amount of cash paid for merchandise.

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...