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
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View this answerAs 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...
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