Question
11. Dream Big Pillow Co. pays 65% of its purchases in the month of purchase, 30% the month after the purchase, and 5% in the
11. Dream Big Pillow Co. pays 65% of its purchases in the month of purchase, 30% the month after the purchase, and 5% in the second month following the purchase. It made the following purchases at the end of 2017 and the beginning of 2018:
Month | December 2017 | January 2018 | February 2018 | March 2018 |
Purchases | $43,489 | $45,208 | $47,347 | $45,325 |
Calculate the payments made in February. Round to the nearest penny, two decimal places
12. Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,877, $31,566, and $34,297, respectively. Round to the nearest penny, two decimal places.
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