(LO 7) Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:

    January   February   March   Material purchases   $ 12,940   15,050   11,870  

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,500. The expected January 31 Accounts Payable balance is:

Multiple Choice

• $7,500.
• $7,525.
• $12,940.
• $6,470.
• $10,220.