Question
Jefferson Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,250 in February Assume Jefferson pays for inventory purchases 70% in the
Jefferson Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,250 in February
Assume Jefferson pays for inventory purchases 70% in the month of the purchase and 30% in the month after purchase. The Accounts Payable balance on December 31 is $98,275. Make a schedule of cash payments for purchases for January and February.
January February
Total merchandise inventory purchases
January February
Cash payments
merchandise inventory:
Dec.- Dec 31 accounts payable, paid Jan
Jan - Jan merchandise inventory purchases paid in Jan
Jan-Jan merchandise inventory purchases paid in Feb
Feb- Feb merchandise inventory purchases paid in Feb
Total payments for merchandise inventory
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