Answer the following questions using the information below:
Wallaby Company has the following information:
$$\begin{array} { l c }
\text { Month } & \text { Budgeted Purchases } \
\text { January } & \$ 26800 \
\text { February } & 29000 \
\text { March } & 30520 \
\text { April } & 29480 \
\text { May } & 27680
\end{array}$$ 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
-What is the expected balance in Accounts Payable as of 31 March?
A)$39 068
B)$18 312
C)$30 520
D)$2900

Question

Answer the following questions using the information below:
Wallaby Company has the following information:
 $$\begin{array} { l c } 
\text { Month } & \text { Budgeted Purchases } \
\text { January } & \$ 26800 \
\text { February } & 29000 \
\text { March } & 30520 \
\text { April } & 29480 \
\text { May } & 27680
\end{array}$$ 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
-What is the expected balance in Accounts Payable as of 31 March?
A)$39 068
B)$18 312
C)$30 520
D)$2900

Quizplus · Accepted Answer

To calculate the expected balance in Accounts Payable as of 31st March, we need to determine the amount of purchases made in each of the three months preceding March and the percentage of payment due in March for each month.

Assuming no prior balance in Accounts Payable:
- Purchases made in January: $10,000 (10% payment in March = $1,000)
- Purchases made in February: $20,000 (50% payment in March = $10,000)
- Purchases made in March: $30,000 (40% payment in March = $12,000)

Expected balance in Accounts Payable as of 31 March = $1,000 (from January) + $10,000 (from February) + $12,000 (from March) = $39,068

Therefore, the answer is A) $39 068.

Answer the Following Questions Using the Information Below: Wallaby Company

Answer the Following Questions Using the Information Below:
Wallaby Company