On December 31, 2019, Kew has 500,000 debit balance in accounts payable to Ross a supplier resulting from a 500,000 advance payment for goods to be manufactured" what amount should be reported as accounts payable on december 31, 2019.

On December 31, 2019, Kew has 500,000 debit balance in accounts payable to Ross a supplier resulting from a 500,000 advance payment for goods to be manufactured" what amount should be reported as accounts payable on december 31, 2019.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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"On December 31, 2019, Kew has 500,000 debit balance in accounts payable to Ross a supplier resulting from a 500,000 advance payment for goods to be manufactured"

what amount should be reported as accounts payable on december 31, 2019.

answer: 500,000.
question: why do we add 500,000 in accounts payable account since this is an advance payment. Isn't this should be a deduction to Accounts Payable?

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