Lough Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $38,000…
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Question “Lough Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $38,000…”
Lough Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $38,000 $49,000 $38,500 $50,000 $49,900 All purchases are paid for as follows: 20% two months after purchase, 45% in the following month, and 35% in the month of purchase. What are the total cash disbursements in August to account for the purchase of merchandise at Lough Company? O $47,665 $43,050 O $13,475 O $43.125
Answer
Correct answer———-$43,125
Working
Payment | |
Purchase August at 35% | $ 13,475.00 |
Purchases in July at 45% | $ 22,050.00 |
20% Discount on June Purchases | $ 7,600.00 |
Total payment due August | $ 43,125.00 |
Conclusion
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