Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 31 Accounts Payable balance is:

Question

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:  Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 31 Accounts Payable balance is:

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The Answer of Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:  Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 31 Accounts Payable balance is:

Fortune Company's Direct Materials Budget Shows the Following Cost of Materials