Estate Corp. has the following information: Month Budgeted Purchases January $26

ID: 2558204 • Letter: E

Question

Estate Corp. has the following information:

Month Budgeted Purchases

January $26,800

February 29,000

March 28,500

April 29,480

May 26,680

Purchases are paid for in the following manner:

10% of the purchase amount in the month of purchase

50% of the purchase amount in the month after purchase

40% of the purchase amount in the second month after purchase

What is the expected balance in Accounts Payable as of March 31?

$37,250

$18,312

$2,900

$30,520

Expected balance in Accounts Payable as of March 31:
= $28,500 X (100% - 10%) + $29,000 X (100% - 60%)
= $37,250

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