Dawn Company has the following information: $$\begin{array} { l l }
\text { Month } & \text { Budgeted Purchas es } \
\text { January } & \$ 26,800 \
\text { February } & 29,000 \
\text { March } & 30,520 \
\text { April } & 29,480 \
\text { May } & 27,680
\end{array}$$ Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase
Is the expected Accounts Payable balance as of May 31.

Question

Dawn Company has the following information: $$\begin{array} { l l } 
\text { Month } & \text { Budgeted Purchas es } \
\text { January } & \$ 26,800 \
\text { February } & 29,000 \
\text { March } & 30,520 \
\text { April } & 29,480 \
\text { May } & 27,680
\end{array}$$ Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase
Is the expected Accounts Payable balance as of May 31.

Quizplus · Accepted Answer

Purchases in May are $27,680. 10% is paid in May ($2,768), 50% in June ($13,840), and 40% in July ($11,072). The expected Accounts Payable balance as of May 31 is $27,680 - $2,768 = $24,912.

Dawn Company Has the Following Information Purchases Are Paid for in the Following Manner: 10% in }