Question
Budgeted credit purchases for Kelsey Company for the first quarter of the year are as follows: Month Budgeted Purchases January $325,000 February $250,000 March $300,000
Budgeted credit purchases for Kelsey Company for the first quarter of the year are as follows:
| Month | Budgeted Purchases |
| January | $325,000 |
| February | $250,000 |
| March | $300,000 |
The company pays for 60% of its purchases in the month of the purchase and 40% in the following month. Kelseys budgeted February cash payments for purchases would be:
| A. | $230,000 | |
| B. | $250,000 | |
| C. | none of these | |
| D. | $345,000 | |
| E. | $280,000 |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
