PA10. LO 7.3 Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $129,582 in November, $294,872 in December, $239,582 in January, and $234,837 in February. What is the balance in accounts payable for January 31, and February 28? Solution Sports Socks Cash Payments Schedule For the Two Months Ending Feb. 28, 2019 Payments Payments for Net Purchase Purchases in Amount Jan. Feb. December January February Total Payments Beginning Balance Purchases Less Discount Ending Balance Payments Accounts Payable January February