Chapter 14, Problem 6F15

To determine

Accounts Payable: For delivered goods or services, the cash owed by the business entities which they need to pay to their suppliers is called accounts payable. In the balances sheet the accounts payable is shown as liabilities.

Create a T-account of accounts payables and inventory and explain the meaning of inventory purchase on the debit side of inventory ledger and on the credit side of Accounts payables ledger. Moreover, explain what are the total debits recorded in the Accounts Payables ledger and what they represent.