Alyssum, Inc., a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | l | l | c | }
\hline & \text { Jan } & \text { Feb } & \text { March } \
\hline \text { Purchases on account } & \$ 267,000 & \$ 291,000 & \$ 310,000 \
\hline
\end{array}$$ The vendors have required the following terms of payment:
$$\begin{array} { | l | l | }
\hline \text { Month of purchase } & 25 \% \
\hline \text { First month after the purchase } & 35 \% \
\hline \text { Second month after the purchase } & 35 \% \
\hline
\end{array}$$ Calculate the total payment on account for the month of March.

Question

Alyssum, Inc., a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | l | l | c | } 
\hline & \text { Jan } & \text { Feb } & \text { March } \
\hline \text { Purchases on account } & \$ 267,000 & \$ 291,000 & \$ 310,000 \
\hline
\end{array}$$ The vendors have required the following terms of payment:
$$\begin{array} { | l | l | } 
\hline \text { Month of purchase } & 25 \% \
\hline \text { First month after the purchase } & 35 \% \
\hline \text { Second month after the purchase } & 35 \% \
\hline
\end{array}$$ Calculate the total payment on account for the month of March.

Quizplus · Accepted Answer

In March, Alyssum, Inc. will make payments for purchases made in January, February, and March. The payments are based on the terms provided by the vendors.- For January purchases (\$267,000), 35% is paid in March: \$267,000 * 35% = \$93,450- For February purchases (\$291,000), 25% is paid in March: \$291,000 * 25% = \$72,750- For March purchases (\$310,000), 25% is paid in March: \$310,000 * 25% = \$77,500Adding these amounts gives the total payment for March: \$93,450 + \$72,750 + \$77,500 = \$243,700. However, this calculation does not match any of the provided options, indicating a potential misunderstanding in the question's setup or the options given. Given the options and the correct approach to calculate based on the provided terms, none of the options accurately reflects the correct calculation based on the given data and payment terms. Re-evaluating the calculation for accuracy and considering the provided options, the correct approach involves calculating payments for each month according to the terms and then summing those payments for March. However, without adjustments or corrections to the initial calculation, none of the provided options (A, B, C, D) directly match the calculated total of \$243,700. Given the discrepancy, the correct response based on the provided calculations and understanding of the payment terms would require revisiting the calculation or the options provided. Without an exact match, the response based on the initial calculation does not align with the options given, suggesting a need for clarification or correction either in the calculation approach or in the interpretation of the payment terms as they apply to the options provided.

Alyssum, Inc The Vendors Have Required the Following Terms of Payment