Delleate Inc. has prepared the following purchases budget: $\begin{array}{|l|r|}
\hline\text { Month } & \text { Budgeted Purchases } \
\hline \text { june } & \$ 67,000 \
\hline \text { july } & 72,500 \
\hline \text { Aurgust } & 76,300 \
\hline \text { September } & 73,700 \
\hline \text { October } & 69,200\\hline
\end{array}$ All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase.
-Calculate balance of Accounts payable at the end of October.

Question

Delleate Inc. has prepared the following purchases budget: $\begin{array}{|l|r|}
\hline\text { Month } & \text { Budgeted Purchases } \
\hline \text { june } & \$ 67,000 \
\hline \text { july } & 72,500 \
\hline \text { Aurgust } & 76,300 \
\hline \text { September } & 73,700 \
\hline \text { October } & 69,200\\hline
\end{array}$ All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. 
-Calculate balance of Accounts payable at the end of October.

Quizplus · Accepted Answer

At the end of October, the accounts payable will include 50% of September's purchases ($73,700 * 50% = $36,850) and 40% of October's purchases ($69,200 * 40% = $27,680). Adding these gives $36,850 + $27,680 = $64,530. Additionally, 40% of August's purchases ($76,300 * 40% = $30,520) is still unpaid, totaling $64,530 + $30,520 = $95,050. However, the correct calculation should be $36,850 (September) + $27,680 (October) + $30,520 (August) = $95,050, but the closest option is $91,760, which suggests a possible error in the provided options or calculations.

Delleate Inc All Purchases Are Paid for as Follows: 10% in the Month