Purchases for May were $104,000,while expected purchases for June and July are $121,000 and $139,000,respectively.All purchases are paid 75% in the month of purchase and 25% the following month.Calculate the budgeted payments for the month of June.
A) $121,000
B) $108,250
C) $30,250
D) $116,750

Question

Quizplus · Accepted Answer

The budgeted payments for June include 75% of June's purchases ($121,000 * 0.75 = $90,750) and 25% of May's purchases ($104,000 * 0.25 = $26,000). Adding these gives $90,750 + $26,000 = $116,750.

Purchases for May Were $104,000,while Expected Purchases for June and July