Homework Answers
Solution :
Account Payable is a liability Account. In T Account, entry in Debit Side reduces the balance of Liability and the entry in credit side increases the liability.
T Account :
| Debit | Credit | ||
| May 2 | $ 7,500 | $ 20,000 | May 01 |
| May 22 | $ 12,000 | $ 1,300 | May 05 |
| $ 8,000 | May 15 | ||
| $ 650 | May 23 | ||
| Bal | $ 10,450 | ||
| $ 29,950 | $ 29,950 |
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