Haggle Corporation, a wholesaler, has a sales budget for next month of $300,000.Cost of units sold is expected to be 40% of sales.All units are paid for in the month following purchase.The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired.Beginning accounts payable is $76,000. The ending balance in accounts payable for next month will be _____.
A)$122,000
B)$120,000
C)$118,000
D)$78,000

Question

Quizplus · Accepted Answer

Cost of goods sold = $300,000 * 40% = $120,000Purchases = Beginning inventory + Cost of goods sold - Ending inventory= $10,000 + $120,000 - $12,000= $118,000Accounts payable = Purchases - Beginning accounts payable= $118,000 - $76,000= $122,000

Haggle Corporation, a Wholesaler, Has a Sales Budget for Next