Question:
Bear Company has the following information:
Month__________Budgeted Purchases
January________$26,800
February________29,000
March__________30,520
April____________29,480
May____________27,680
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 second month after purchase
1. What is the expected balance in Accounts Payable as of March 31?
Answer was $39,068
2. What is the expected balance in Accounts Payable as of April 30?
Answer was $38,740