Determine the financial statement effects of Accounts PayableTransactions, when ABC Company has the following...

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Accounting

Determine the financial statement effects of Accounts PayableTransactions, when ABC Company has the following items:
a. Purchases $2,500 of inventory on credit.
b. Sells inventory for $3,300 on credit.
c. Records $2,520 cost of sales for transaction b.
d. Receives $3,300 cash towards accounts receivable.
e. Pays $2,520 cash to settle accounts payable.
What is the ending balance of Accounts Payable after the abovetransactions?

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All working forms part of the answer Accounts payables balance increase by the amount of purchases on account decreases by the amount of Cash paid Purchase See Answer

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In: AccountingDetermine the financial statement effects of Accounts PayableTransactions, when ABC Company has the following items:...Determine the financial statement effects of Accounts PayableTransactions, when ABC Company has the following items:a. Purchases $2,500 of inventory on credit.b. Sells inventory for $3,300 on credit.c. Records $2,520 cost of sales for transaction b.d. Receives $3,300 cash towards accounts receivable.e. Pays $2,520 cash to settle accounts payable.What is the ending balance of Accounts Payable after the abovetransactions?