Yellow Company had a balance of $85,000 in Accounts Payable at the beginning of June, and purchased $180,000 of merchandise on account during the month. At the end of June, Yellow's Account Payable balance was $60,000. What amount did Yellow pay on account during June?

Yellow Company had a balance of $85,000 in Accounts Payable at the beginning of June, and purchased $180,000 of merchandise on account during the month. At the end of June, Yellow's Account Payable balance was $60,000. What amount did Yellow pay on account during June?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Yellow Company had a balance of $85,000 in Accounts Payable at the beginning of June,
and purchased $180,000 of merchandise on account during the month. At the end of
June, Yellow's Account Payable balance was $60,000. What amount did Yellow pay on
account during June?

Expert Solution

Step 1

Opening accounts payable = $85,000

Purchases = $180,000

Closing accounts payable = $60,000

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