Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is a
The normal balance of an accounts payable is credit. So you start with $800-cr Any debit posting will reduce that normal balance and any credit posting will increase the normal balance.
The $600 debit posting will create a $200 credit balance(800-600)
The $300 credit posting will create a $500 credit balance(300+200)
Answer: A. $500 - Credit.
It may help to figure it out if you create a t-chart and enter the amounts.
