Final answer:
The estimated dollar amount of outstanding purchase orders is found in the accounts payable account. Purchase orders are recorded in this account until they are paid off.
Step-by-step explanation:
The estimated dollar amount of outstanding purchase orders is found in the accounts payable account. The accounts payable account represents the amount of money a company owes to its vendors and suppliers for goods or services purchased on credit. Purchase orders are usually recorded in the accounts payable account until they are paid off.
For example, if a company orders $1,000 worth of inventory from a supplier but has not yet paid for it, the $1,000 would be recorded as an outstanding purchase order in the accounts payable account.
Other related accounts in the accounting system include accounts receivable (representing money owed to the company by its customers) and inventory (representing the value of goods held for sale).