Question

IP Company pays for purchases of materials in full in the month following the purchase. During the previous month, IP had purchases of $25,000. During the current month, IP had purchases of $30,000. The amount that I will pay during the current month for purchases is:________

Answer 1

The correct answer is "$25,000".

Step-by-step explanation:

The given values are:

IP purchase during the previous month

= $25,000

IP purchases during the current month

= $30,000

As the sum is charged in the corresponding sales month, IP must compensate for the transaction made mostly during the reporting period throughout the previous quarter.

Therefore the quantity IP will be paying for purchasing mostly during the reporting period seems to be $25,000.