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:
- 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 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