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Cyreno Corporation Makes All Purchases on Account Under the Following

Question 31

Multiple Choice

Cyreno Corporation makes all purchases on account under the following payment pattern: Paid in the month of purchase: 20%
Paid in the first month following purchase: 30%
Paid in the second month following purchase: 50%
If purchases for April, May, and June were $400,000, $160,000, and $350,000, respectively, what was Cyreno's budgeted payables balance on June 30?


A) $48,000.
B) $70,000.
C) $248,000.
D) $360,000.
E) $910,000.

Correct Answer:

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