Estate Corp., has the following information:

Purchases are paid for in the following manner:
10% of the purchase amount in the month of purchase
50% of the purchase amount in the month after purchase
40% of the purchase amount in the second month after purchase
What is the expected balance in Accounts Payable as of April 30?

Question

Estate Corp., has the following information:

Purchases are paid for in the following manner:
10% of the purchase amount in the month of purchase
50% of the purchase amount in the month after purchase
40% of the purchase amount in the second month after purchase
What is the expected balance in Accounts Payable as of April 30?

Quizplus · Accepted Answer

April ($30,480 × 0.9) + March ($29,400 × 0.4) = $39,192

Estate Corp., Has the Following Information