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