Question

Brooke-lyn makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30% Paid in the first month following purchase: 65% Paid in the second month following purchase: 5% If purchases for April, May, and June were $200,000, $160,000, and $250,000, respectively, what was the firm's budgeted payables balance on June 30?A. $175,000B. $179,000C. $183,000D. $189,000

Answer 1

Answer:

Total budget payable= $189,000

Explanation:

Giving the following information:

Paid in the month of purchase: 30%

Paid in the first month following purchase: 65%

Paid in the second month following purchase: 5%

Purchases:

April= $200,000

May= $160,000

June= $250,000

Payable balance June:

Purchase from April= (200,000*0.05)= 10,000

Purchase from May= (160,000*0.65)= 104,000

Purchase from June= (250,000*0.3)= 75,000

Total budget payable= $189,000