Question
At the end of 2021, Accounts Payable totaled $6,000. During the first quarter of 2021, Hastings Corp. purchases $80,000 of raw materials to be used
At the end of 2021, Accounts Payable totaled $6,000. During the first quarter of 2021, Hastings Corp. purchases $80,000 of raw materials to be used in production. Hastings Corp. buys all raw materials on account and pays for 60% of the purchase in the quarter they were purchased and 40% in the next quarter. What are cash disbursements for quarter 1 of 2021?
- A. $38,000
- B. $54,000
- C. $48,000
- D. $42,000
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Louise Crawford, Stuart Manson
7th Edition
1473760186, 9781473760189
