High Company has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } & \$ 33,000 \
\text { February } &37,000\
\text { March } & 31,000 \
\text { April } & 30,000 \
\text { May } &27,680 \
\end{array}$ Purchases are paid for in the following manner: 75% in the month of purchase
25% in the month after purchase
_____ is the expected balance in Accounts Payable as of April 30.
A)$0
B)$7,500
C)$20,250
D)$30,000

Question

High Company has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } & \$ 33,000  \
\text { February } &37,000\
\text { March } & 31,000  \
\text { April } & 30,000 \
\text { May } &27,680 \
\end{array}$ Purchases are paid for in the following manner: 75% in the month of purchase
25% in the month after purchase
_____ is the expected balance in Accounts Payable as of April 30.
A)$0
B)$7,500
C)$20,250
D)$30,000

Quizplus · Accepted Answer

Accounts Payable as of April 30 will include 25% of April's purchases because 75% is paid in the month of purchase, and the remaining 25% is paid the following month. April's purchases are $30,000, so 25% of that is $7,500.

High Company Has the Following Information Purchases Are Paid for in the Following Manner: 75% in