Purchases for May were $60,000, while expected purchases for June and July are $75,000 and $92,000, respectively. All purchases are paid 30% in the month of purchase and 70% the following month. At what amount are June payments for purchases budgeted?

Question

Quizplus · Accepted Answer

June payments include 30% of June purchases ($75,000 * 0.30 = $22,500) and 70% of May purchases ($60,000 * 0.70 = $42,000), totaling $64,500.

Purchases for May Were $60,000, While Expected Purchases for June