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 >
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.
To determine how much cash was paid on accounts payable during October, we need to reconcile the accounts payable balance from September 30 to October 31, while considering the total purchases made on account during October.
Steps to Solve the Problem:
-
Starting balance on September 30:
- Accounts payable: $160,000
-
Ending balance on October 31:
- Accounts payable: $136,500
-
Total purchases on account during October:
- Purchases: $289,000
Formula to Calculate Cash Paid on Accounts Payable:
The formula to determine the cash paid on accounts payable during the period is:
\text{Cash Paid} = \text{Beginning Accounts Payable Balance} + \text{Purchases on Account} - \text{Ending Accounts Payable Balance}
Insert the Values:
-
Beginning Accounts Payable Balance (September 30):
160,000 -
Purchases on Account (October):
289,000 -
Ending Accounts Payable Balance (October 31):
136,500
Calculation:
\text{Cash Paid} = \$160,000 + \$289,000 - \$136,500
\text{Cash Paid} = \$449,000 - \$136,500
\text{Cash Paid} = \$312,500
Conclusion:
Therefore, the amount of cash that was paid on accounts payable during October is \boxed{312,500}.
This detailed breakdown should help clarify the process for determining the cash paid on accounts payable. By understanding the formula and how to apply it, similar problems can be approached systematically.