In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n): account receivable intangible asset account payable current asset fixed liability

The correct answer is: account payable.<br /><br />Explanation: When Thule sells bike racks to the Bike Gallery and hasn't received payment yet, Thule would record this as an account payable. An account payable represents a liability for Thule, as it is an amount owed by Thule to the Bike Gallery. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as an account payable.