Question

Purchases on account are given below: October November December 30,000 40,000 50,000 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month. How much will the cash payments for purchases be in November

Answer 1

$35,500

Step-by-step explanation:

Given that 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month.

Invariably for the month of November, cash payments will include 55% of purchases in November and 45% of the purchase in October.

= (45% × $30,000) + (55% × $40,000)

= $13,500 + $22,000

= $35,500

Answer 2

Cash payments for purchase in November= $35,500

Step-by-step explanation:

cash payments for purchase in November=0.55*November+0.45*October

which is equal to

=(0.55*40000)+(0.45*30000)

which is equal to

=$35500.