Preparing a schedule of cash payments for inventory purchases Waldrop Grocery buys and sells groceries in a

Question:

Preparing a schedule of cash payments for inventory purchases Waldrop Grocery buys and sells groceries in a community far from any major city. Cedric Waldrop, the owner, budgeted the store's purchases as follows:

Waldrop's suppliers require that 70 percent of accounts payable be paid in the month of purchase. The remaining 30 percent is paid in the month following the month of purchase.

Preparing a schedule of cash payments for inventory purchases Wa

Required
a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
b. Determine the amount of accounts payable Waldrop will report on the store's quarterly pro forma balance sheet.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...