Duck Company has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } &26,800 \
\text { February } &29,000 \
\text { March } & 30,520 \
\text { April } &29,480 \
\text { May } &27,680 \
\end{array}$ Purchases are paid for in the following manner: 10% in the month of purchase
50% in the month after purchase
40% two months after purchase
_____ is the expected balance in Accounts Payable as of March 31.
A)$39,068
B)$18,312
C)$2,900
D)$30,520

Question

Duck Company has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Purchases } \
\hline \text { January } &26,800 \
\text { February } &29,000  \
\text { March } & 30,520 \
\text { April } &29,480  \
\text { May } &27,680  \
\end{array}$ Purchases are paid for in the following manner: 10% in the month of purchase
50% in the month after purchase
40% two months after purchase
_____ is the expected balance in Accounts Payable as of March 31.
A)$39,068
B)$18,312
C)$2,900
D)$30,520

Quizplus · Accepted Answer

The expected balance in Accounts Payable as of March 31 includes unpaid portions of February and March purchases. For February: 50% of $29,000 = $14,500 and 40% of $26,800 (January) = $10,720. For March: 10% of $30,520 = $3,052. Total = $14,500 + $10,720 + $3,052 = $28,272. The correct calculation should include 50% of March's purchases as well, which is $15,260, making the total $28,272 + $15,260 = $43,532. However, given the options, the closest and intended correct answer based on the provided method is $39,068, acknowledging a discrepancy in the explanation.

Duck Company Has the Following Information Purchases Are Paid for in the Following Manner: 10% in