Wallaby Inc. sells customized off-road vehicles. The company has negotiated with all their suppliers to pay for 20% of their purchase at the time of sale, 10% of the purchase one month after the sale, and the remaining balance is then due 2 months after the sale.

Construct a schedule of cash disbursements for Wallaby's October ($420,000), November ($1,250,000), and December ($3,000,000) purchases and answer the following 3 questions:

1. How much cash was paid in December for purchases made in November?

2. How much cash was paid in November for purchases on account?

3. If these were the only purchases for the year, how much did Wallaby Inc. report in Accounts Payable on their 12/31 balance sheet?