Rival Company purchases merchandise on account.In general,Rival pays 50% in the month of purchase and 50% in the following month.All payments in the month of purchase qualify for a 2% cash discount.First quarter budgeted purchases are:
$$\begin{array} { l r }
\text { January } & \$ 90,000 \
\text { February } & 80,000 \
\text { March } & 96,000
\end{array}$$

Question

Rival Company purchases merchandise on account.In general,Rival pays 50% in the month of purchase and 50% in the following month.All payments in the month of purchase qualify for a 2% cash discount.First quarter budgeted purchases are:
 $$\begin{array} { l r } 
\text { January } & \$ 90,000 \
\text { February } & 80,000 \
\text { March } & 96,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of Rival Company purchases merchandise on account.In general,Rival pays 50% in the month of purchase and 50% in the following month.All payments in the month of purchase qualify for a 2% cash discount.First quarter budgeted purchases are:
 $$\begin{array} { l r } 
\text { January } & \$ 90,000 \
\text { February } & 80,000 \
\text { March } & 96,000
\end{array}$$

Rival Company Purchases Merchandise on Account January $90,000 February 80,000 March 96,000\begin{array} { l r } \text { January } & \$ 90,000 \\\text { February } & 80,000 \\\text { March } & 96,000\end{array} January February March ​$90,00080,00096,000​

Rival Company Purchases Merchandise on Account $\begin{array} { l r } \text { January } & \$ 90,000 \\\text { February } & 80,000 \\\text { March } & 96,000\end{array}$