Lough Company prepared the following purchases budget:

All purchases are paid for as follows: 20% two months after purchase,55% in the following month,and 25% in the month of purchase.
What are the total cash disbursements in October to account for the purchase of merchandise at Lough Company?

Question

Lough Company prepared the following purchases budget:

All purchases are paid for as follows: 20% two months after purchase,55% in the following month,and 25% in the month of purchase.
What are the total cash disbursements in October to account for the purchase of merchandise at Lough Company?

Quizplus · Accepted Answer

D)
Aug.Purchases $39,600 × 20% = $7,920
Sept.46,000 × 55% = 25,300
Oct.49,100 × 25% = 12,275
Total $45,495

Lough Company Prepared the Following Purchases Budget