Accounts Payable had a balance of 4400 at the beginning of t

Accounts Payable had a balance of $4,400 at the beginning of the month and $6,200 at the end of the month. During the month, purchases on account amounted to $10,300. Calculate the payments to suppliers during the month.

Solution

Initial Balance at the beginning of the month=$4,400

Purchases during the month=$10,300

After monthly purchases balance that must be left=$4,400-$10,300=-$5,900

The balance is coming out to be negative but the actual amount at the end of month=$6,200

So, the payment of the supplier during the month must have been=$6,200-(-$5,900)=$12,100