Question
Goliath Company prepared the following purchases budget: Month Budgeted Purchases June $35,900 July $41,700 August $38,300 September $44,500 October $48,400 All purchases are paid for
Goliath Company prepared the following purchases budget:
| Month | Budgeted Purchases |
| June | $35,900 |
| July | $41,700 |
| August | $38,300 |
| September | $44,500 |
| October | $48,400 |
All purchases are paid for as follows: 30% in the month of purchase, 45% in the following month, and 25% two months after purchase. What are the cash disbursements in October to account for the September purchases at Goliath Company?
| A) | $20,025 | |
| B) | $11,125 | |
| C) | $92,900 | |
| D) | $8975 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
