Reference no: EM132615567

In 2016, a firm has Accounts Receivable with an ending balance of $4,000 and an Accounts Payable with an ending balance of $6,000. During 2017, the following transactions occurred:

I. Bought inventory worth $3,000 using credit.
II. Sold goods for $10,000 receiving $8,000 in cash and charging $2,000 to a costumer's credit account.
III. Received credit payment of $1,000 from a customer.
IV. Paid $2,000 to creditors.

Problem 1: What is the ending balance of Accounts Payable in 2017?

Option 1: Accounts Payable: $7,000

Option 2: Accounts Payable: $8,000

Option 3: Accounts Payable: $1,000

Option 4: Accounts Payable: $5,000