Calculating credit purchases from trade payables account Steps:

• Determine net change in trade payables: closing balance ($15,000) - opening balance ($13,000) = $2,000 increase.
• Identify gross settlement from payments: cash paid to suppliers ($190,000) + cash discount taken ($10,000) = $200,000.
• Apply formula for credit purchases: net payments + discounts + change in payables = $190,000 +$10,000 + $2,000 =$202,000. Why D is correct:
• Matches the accounting formula for credit purchases, which reconstructs gross purchases by adding discounts received (as income) to net payments and adjusting for the payables balance change. Why the others are wrong:
• A: Subtracts payables increase from net payments ($190,000 -$2,000), ignoring discounts and formula.
• B: Adds payables increase to net payments ($190,000 +$2,000), forgetting to add back discounts.
• C: Adds discounts but subtracts payables increase ($190,000 +$10,000 - $2,000), reversing the adjustment. Final answer: D