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30 July, 17:42

Purchases in May were $58,000, while expected purchases for June and July are $72,000 and $85,000, respectively. All purchases are paid 40% in the month of purchase and 60% in the following month. At what amount are June payments for purchases budgeted?

A. $97,600

B. $63,600

C. $86,000

D. $66,400

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Answers (1)
  1. 30 July, 20:15
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    Purchases in May were $58,000, while expected purchases for June and July are $72,000 and $85,000, respectively. All purchases are paid 40% in the month of purchase and 60% in the following month.

    Cash for June:

    June = 72,000*0.4 = 28,800

    From May = 58,000*0.6 = 34,800

    Total = $63,600
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