Copyright

Correy Company reported the following information for 2013: October November December Budgeted...

Question:

Correy Company reported the following information for 2013:

October November December
Budgeted sales $466,300 $255,121 $454,096
Budgeted purchases $266,179 $545,888 $290,963

The cost of goods sold is 32% of sales.

Correy purchases and pays for merchandise 51% in the month of acquisition and the rest of it in the following month. Accounts payable are used only for inventory acquisitions.

The budgeted balance for Accounts Payable on October 31, 2013, is _____._.

Account payable:

The account payable is the outstanding balance that the company needs to pay on the future date as per the terms agreed at the time of purchases. The decrease in the account payable indicates cash outflow. It is recorded as a current liability by debiting the related expense head for which the expense is incurred.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

As given Correy purchases and pays for merchandise 51% in the month of acquisition and the rest of it in the following month.

Hence, the 49% will be...

See full answer below.


Learn more about this topic:

Loading...
Accounts Payable Journal Entry: Process & Examples

from

Chapter 7 / Lesson 7
20K

Learn how accounts payable works and see the accounts payable process with a flow chart of the steps. See a journal entry example and learn how to record it properly.


Related to this Question

Explore our homework questions and answers library