Ray Company began the accounting period with a $36,000 credit balance in its Accounts Payable account. During

Question:

Ray Company began the accounting period with a $36,000 credit balance in its account. During the accounting period, Ray incurred expenses on account of $108,000. The ending balance was $48,000.

Required
Based on this information, determine the amount of cash outflow for expenses during the accounting period.

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...