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Lough Company prepared the following purchases budget: Month Budgeted Purchases June $45,000 July $42,000 August $39,600 September $49,000 October $48,500 All purchases are paid for
Lough Company prepared the following purchases budget: Month Budgeted Purchases June $45,000 July $42,000 August $39,600 September $49,000 October $48,500 All purchases are paid for as follows: 15% two months after purchase, 40% in the following month, and 45% in the month of purchase. What are the total cash disbursements in August to account for the purchase of merchandise at Lough Company? A. $42,990 B. $47,365 C. $17,820 D. $41,370
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