Calculating credit purchases from incomplete records

Steps:

• Use the trade payables equation: Opening payables + Credit purchases = Cash payments to suppliers + Closing payables.
• The given cash payments ($160,000) are total, not specified as to suppliers only.
• Without separating payments to credit suppliers, credit purchases cannot be isolated from the payables change ($27,900 -$23,450 = $4,450 net increase).
• Not enough information to compute exact credit purchases.

Why D is correct:

• Insufficient data prevents accurate calculation; no option fits definitively, but D approximates a common error (payments + closing).

Why the others are wrong:

• A assumes all cash payments are to suppliers, yielding ~$164,450 (close but unconfirmed).
• B adds unsubstantiated adjustment to payables change.
• C inflates by unrelated amount (~$30,000).

Final answer: Not enough information.