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Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September $838,000 October $1,046,000 November $852,000 December
Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
September | $838,000 |
October | $1,046,000 |
November | $852,000 |
December | $884,000 |
At Adi, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. In Adi's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?
$884,000
$639,000
$221,000
$663,000
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