The Accounts Payable account has a $3,700 credit balance. An entry for the payment of $1,350 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is Multiple Choice a $2,350 credit balance. a $2,350 debit balance. a $5,050 debit balance. a $5,050 credit balance.

a $2,350 credit balance

Explanation:

Accounts payable is a liability account. As such, when a credit entry into the account increases the balance and a debit entry reduces the balance in the account.

For the payment of an amount owed, it will be posted as a debit.

Therefore the balance in the account after the posting

= ($3700) + $1350

= ($2350)

Note the parenthesis was used to indicate a credit item.

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