The Three Stooges has the following estimated sales. Purchases are equal to 75 percent of the following quarter's sales.The accounts payable period is 45 days.Assume each month has 30 days.What is the estimated accounts payable balance at the end of quarter 2?

Question

The Three Stooges has the following estimated sales.  Purchases are equal to 75 percent of the following quarter's sales.The accounts payable period is 45 days.Assume each month has 30 days.What is the estimated accounts payable balance at the end of quarter 2?

Quizplus · Accepted Answer

Q₂ ending accounts payable = 45/90(0.75 × $16,800) = $6,300

The Three Stooges Has the Following Estimated Sales