Complete this question by entering your answers in the tabs below. required a required b required c corentine co. had $160,000 of accounts

General
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complete this question by entering your answers in the tabs below. required a required b required c corentine co. had $160,000 of accounts payable on september 30 and $136,500 on october 31. total purchases on account during october were $289,000. determine how much cash was paid on accounts payable during october. accounts payable ending balance required a required b

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How to Calculate Cash Paid on Accounts Payable and Ending Balance of Accounts Payable

Answer:

To calculate the cash paid on accounts payable during October, you need to consider the change in accounts payable from September 30 to October 31. Here’s how you can calculate it:

  1. Calculate the accounts payable at the beginning of October:

    Accounts Payable on September 30 = $160,000

  2. Calculate total purchases on account during October:

    Total Purchases on Account = $289,000

  3. Calculate the accounts payable at the end of October:

    Accounts Payable on October 31 = $136,500

  4. Determine the cash paid on accounts payable during October:

    Cash Paid on Accounts Payable = Accounts Payable at the Beginning of October - Accounts Payable at the End of October + Total Purchases on Account
    Cash Paid on Accounts Payable = $160,000 - $136,500 + $289,000
    Cash Paid on Accounts Payable = $312,500

Therefore, Corentine Co. paid $312,500 in cash on accounts payable during October.

To determine the required ending balance of accounts payable, you simply take the accounts payable balance at the end of October:

Accounts Payable Ending Balance = $136,500

Therefore, the required ending balance of accounts payable for Corentine Co. on October 31 is $136,500.