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Question - Preparing an Accounts Payable Schedule
Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:
April $374,900
May 411,400
June 416,600
Wight typically pays 20% on account in the month of billing and 80% the next month.
Required:
1. How much cash is required for payments on account in May?
2. How much cash is expected for payments on account in June?
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