Mickle Company has the following information:
Purchases are paid for in the following manner:
20 percent in the month of purchase
50 percent in the month after purchase
30 percent two months after purchase
-The total cash disbursements in December for the purchase of merchandise should be

Question

Mickle Company has the following information:
  Purchases are paid for in the following manner:
20 percent in the month of purchase
50 percent in the month after purchase
30 percent two months after purchase
-The total cash disbursements in December for the purchase of merchandise should be

Quizplus · Accepted Answer

The total cash disbursements in December for the purchase of merchandise should be $202,500. This is because the company purchased $230,000 worth of merchandise in December, and it paid $46,000 of this amount in cash. The remaining $184,000 was paid on account.

Mickle Company Has the Following Information