Hi!

I am just confused to how selling expenses are $6 000 in the answers when it states that half of the selling expenses is paid in June. Can someone please explain why it is $6 000 instead of $3 000.

Thanks!

LOS 10 Cash disbursements budget Rhiannon's Party Shop sells various party and celebration supplies. The following data were taken from Rhiannon's detailed budgeted income statement for the month of June. Although the labour costs and rent will be paid during June, the advertising expense and inventory purchases will be paid for in July. Half of the selling expense is paid in June while the other half is not due until July. $15000 2 800 Labour expenses Advertising expenses Rent on store Inventory purchases Selling expenses 7 500 8500 6 000 REQUIRED Prepare a cash disbursements budget for Rhiannon's Party Shop for the month of June. Rhiannon's Party Shop Cash Disbursements Budget For the Month of June Labour expenses Rent on store Selling expenses Total cash disbursements $15 000 7 500 6 000 $28 500