Use the information below to answer the following question(s).
Samson Company prepared the following purchases budget:
All purchases are paid for as follows: 20% in the month of purchase, 60% in the following month, and 20% two months after purchase.
-What are the Samson Company cash disbursements in August for June purchases?

Question

Use the information below to answer the following question(s).
Samson Company prepared the following purchases budget:
  All purchases are paid for as follows: 20% in the month of purchase, 60% in the following month, and 20% two months after purchase.
-What are the Samson Company cash disbursements in August for June purchases?

Quizplus · Accepted Answer

Samson Company has a 2% discount period of 10 days and a credit period of 30 days. The company purchased $35,600 of merchandise on June 15, 2023, with an invoice date of June 15, 2023. Samson Company paid for the merchandise on July 14, 2023. The cash discount period expired on June 25, 2023. The amount of cash disbursements in August for June purchases is $7,120.

Use the Information Below to Answer the Following Question(s)