At the end of August, there was $90,000 in inventory. The change in inventory balance for September was $(10,000). The following entries were posted to the GL at the end of September:

Cost of sales Dr $420,000

Inventory Cr $420,000

To record the cost of sales for September

Accounts payable Dr $110,000

Cash Cr $110,000

To record payments for purchases in August and prior months

The company pays for 80% of a months purchases in the month of the purchase.

Required: 1. Calculate the purchases made in September.

2. What is the total amount of cash disbursements made in September for purchases?

3.What amount will be reported for inventory on the September 30 balance sheet?