Accounts Payable, after deducting debit balances in suppliers' accounts amounting to 100,000   ----------- 4,000,000 What amount should be reported as current liabilities at year-end? Answer is 4,100,000 Question: why do we include 100,000 as a liability?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Accounts Payable, after deducting debit balances in suppliers' accounts amounting to 100,000   ----------- 4,000,000

What amount should be reported as current liabilities at year-end?

Answer is 4,100,000

Question: why do we include 100,000 as a liability? 

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