Purchases for May were $100,000, while expected purchases for June and July are $110,000 and $125,000, respectively. All purchases are paid 25% in the month of purchase and 75% the following month. At what amount are June payments for purchases budgeted?

Question

Quizplus · Accepted Answer

A) Calculations:
$110,000 × 25% = $27,500
$100,000 × 75% = $75,000
$27,500 + $75,000 = $102,500

Purchases for May Were $100,000, While Expected Purchases for June