Question

Estate Corp. has the following information:

Month Budgeted Purchases

January $26,800

February 29,000

March 28,500

April 29,480

May 26,680

Purchases are paid for in the following manner:

10% of the purchase amount in the month of purchase

50% of the purchase amount in the month after purchase

40% of the purchase amount in the second month after purchase



What is the expected balance in Accounts Payable as of March 31?

$37,250

$18,312

$2,900

$30,520

Answer 1

Answer: $37,250

Step-by-step explanation:

The expected balance in Accounts Payable as of March 31 is:

January February March

$26,800- 2,680. 13,400 10,720

$29,000. 2,900 14,500

$28,500. 2,850

In Accounts payable is $26,800 + $29,000 + $28,500= $84,300

= $84,300 - $26,800 - $17,400 -$2,850 = $37,250