Bill Corporation's operational data are below: - Sales are budgeted at $260,000 for November, $288,000 for December,
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Question:
Bill Corporation's operational data are below:
- Sales are budgeted at $260,000 for November, $288,000 for December, and $210,000 for January. All sales are credit sales.
- Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 65% of sales.
- The Bill company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next
month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Q: December cash disbursements for Bill merchandise purchases would be:
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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