Matini Company prepared the following purchases budget: Month Budgeted Purchases
ID: 2370984 • Letter: M
Question
Matini Company prepared the following purchases budget:
Month Budgeted Purchases
June $40,000
July $43,000
August $39,600
September $46,000
October $49,100
All purchases are paid as follows: 20% two months after purchase, 55% in the folowwing month, and 25% in the month of purchase. What are the cash disbursements in October for September purchases?
Explanation / Answer
the cash disbursements in October for September purchases = 55%*46000 = $25,300