Question
The following details have been extracted from the accounts payable records of RS. Invoices paid in the month of purchase15% of total value Invoices paid
The following details have been extracted from the accounts payable records of RS.
Invoices paid in the month of purchase15% of total value
Invoices paid in the first month after purchase65% of total value
Invoices paid in the second month after purchase20% of total value
The pattern of payments is expected to continue in the future and has been used to produce RS's cash budget for October to December.
Purchases for October to December are budgeted as follows:
October$280,000
November$250,000
December$300,000
A settlement discount of 5% is taken on invoices paid in the month of purchase.What is the amount budgeted to be paid to suppliers in December?
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