Question

Garda purchased $610,000 of merchandise in August and expects to purchase $730,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the following month. Compute cash payments for merchandise for September.

Answer 1

Answer: $646,000

Step-by-step explanation:

Cash payment for the month of September

August pmt = $610,000x 70%= $427,000

September pmt = $730,000 x 30%= $219,000

Total payment in September = $427,000 + $219,000 = $646,000