Description
On 12/31/17, Ginger Inc had a credit balance of $850,000 in its Accounts Payable. On 12/20/17 cat food shipped from Allie Inc. FOB destination were received by Ginger Inc on 1/2/18. The cost of the cat food was $40,000 on the invoice. What should be the ending balance in Ginger Inc.'s A/P?
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Explanation & Answer
The ending balance should simply be the current balance minus the price of the invoice
Balance: $810,000
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