Company A has given us the following information:
Purchases during 1st quarter $18,000
Cash payments for materials during 1st quarter 22,000
Accounts Payable balance at the end of 1st quarter 6,000
Note: The accounts payable account is used only for direct materials.
What was the balance in Company A's accounts payable account at the beginning of the 1st quarter?
The solution explains how to calculate the balance in the accounts payable account given the purchases and payments