A supplier's individual account in the Payables Ledger typically carries a credit balance. If it unexpectedly shows a debit balance, what could this indicate?

Correct answer: C) The business overpaid the supplier or returned goods after fully settling the account.

Explanation

A debit balance on a payable account means the supplier owes the business money. This typically happens if the business overpays an invoice or returns goods that had already been paid for.