Question 8

The beginning balance in Accounts Payable on Company A's Year 2 Balance Sheet is $180,000. The company purchased on account inventory of $200,000 during Year 2, and paid suppliers $40,000 in cash. What is the ending balance in Accounts Payable on the Year 2 Balance Sheet? Assuming no other transactions affected the account during the year.

Hint: you may find it helpful to use a t-account as you work through this question.

$160,000

$380,000

$340,000

$20,000