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Lough Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $36,000 $49,000 $39,400 $50,000 $48,500 All purchases are paid for
Lough Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $36,000 $49,000 $39,400 $50,000 $48,500 All purchases are paid for as follows: 5% two months after purchase, 35% in the following month, and 60% in the month of purchase What are the cash disbursements in October to account for the September purchases at Lough Company? O A. $2,500 OB. $17,500 OC. $1,800 OD. $50,000
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