Question: Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:
April $374,400
May 411,200
June 416,000
Wight typically pays 20 percent on account in the month of billing and 80 percent the next month. Required:
1. How much cash is required for payments on account in May?
2. How much cash is expected for payments on account in June?