question archive On December 3, a company purchases merchandise for $47,000 on account, FOB destination
On December 3, a company purchases merchandise for $47,000 on account, FOB destination
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On December 3, a company purchases merchandise for $47,000 on account, FOB destination. Freight charges are $800. On December 26, the company pays the vendor $14,000. What will the company's balance of Accounts Payable be on the December 31 balance sheet?
a. $33,000
b. $33,800
c. $47,000
d. $47,800
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The balance in accounts payable is Option a) $33,000.
Explanation:
- Balance in accounts payable = Purchase price - Payment made to the vendors
- Balance in accounts payable = $47,000 - $14,000
- Balance in accounts payable = $33,000
