Purchases on account are given below: $$\begin{array} { | c | c | c | }
\hline \text { October } & \text { November } & \text { December } \
\hline 30,000 & 40,000 & 50,000 \
\hline
\end{array}$$ 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month.
How much will the cash payments for purchases be in December?
A) $44,500
B) $50,000
C) $46,000
D) $45,500

Question

Purchases on account are given below: $$\begin{array} { | c | c | c | } 
\hline \text { October } & \text { November } & \text { December } \
\hline 30,000 & 40,000 & 50,000 \
\hline
\end{array}$$ 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month.
How much will the cash payments for purchases be in December?
A) $44,500
B) $50,000
C) $46,000
D) $45,500

Quizplus · Accepted Answer

In December, the cash payments for purchases will include 55% of December's purchases plus 45% of November's purchases. For December, that's 55% of $50,000 = $27,500. For November, that's 45% of $40,000 = $18,000. Adding these together gives $27,500 + $18,000 = $45,500.

Purchases on Account Are Given Below 55% of the Month's Purchases Will Be Paid in the |