Reference no: EM132879434

Plus Company has the following information:

Month              Budgeted Purchases
January            P26,800
February           29,000
March                 30,520
April                    29,480
May                      27,680

Purchases are paid for in the following manner:

1. 10% of the purchase amount in the month of purchase
2. 50% of the purchase amount in the month after purchase
3. 40% of the purchase amount in the month after purchase

Problem 1: What is the expected balance in Accounts Payable as of March 31?

A) P39,068
B) P18,312
C) P2,900
D) P30,520

Problem 2: What is the expected balance in Accounts Payable as of April 30?

A) P26,532
B) P38,740
C) P12,208
D) P17,688

Problem 3: What is the expected Accounts Payable balance as of May 31?

A) P11,792
B) P24,912
C) P36,704
D) P2,948