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Ahmed Company purchases all merchandise on credit. It recently budgeted the month-en accounts payable balances below. Cash payments on accounts payable during each mont are expected to be June, $1,350,000; July, $1,400,000; and August, $1,400,000. Hint: Use- the relation (Beg. Accounts Payable + Purchases on Credit - Payments on Accounts Payab = End. Accounts Payable) to solve for budgeted purchases. Accounts payable June 30 May 31 $ 150,000 $ 130,000 Computing budgeted merchandise purchases from accounts payable June July Budgeted amounts: July 31 $ 200,000 Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases August 31 $ 160,000 August

Ahmed Company purchases all merchandise on credit. It recently budgeted the month-en accounts payable balances below. Cash payments on accounts payable during each mont are expected to be June, $1,350,000; July, $1,400,000; and August, $1,400,000. Hint: Use- the relation (Beg. Accounts Payable + Purchases on Credit - Payments on Accounts Payab = End. Accounts Payable) to solve for budgeted purchases. Accounts payable June 30 May 31 $ 150,000 $ 130,000 Computing budgeted merchandise purchases from accounts payable June July Budgeted amounts: July 31 $ 200,000 Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases August 31 $ 160,000 August

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below. Cash payments on accounts payable during each month are expected to be June, $1,350,000; July, $1,400,000; and August, $1,400,000. Hint: Use the relation (Beg. Accounts Payable + Purchases on Credit - Payments on Accounts Payable = End. Accounts Payable) to solve for budgeted purchases. Accounts payable June 30 May 31 July 31 $ 150,000 $ 130,000 $ 200,000 Computing budgeted merchandise purchases from accounts payable Budgeted amounts: June July Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases August 31 $ 160,000 August
Transcribed Image Text:Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below. Cash payments on accounts payable during each month are expected to be June, $1,350,000; July, $1,400,000; and August, $1,400,000. Hint: Use the relation (Beg. Accounts Payable + Purchases on Credit - Payments on Accounts Payable = End. Accounts Payable) to solve for budgeted purchases. Accounts payable June 30 May 31 July 31 $ 150,000 $ 130,000 $ 200,000 Computing budgeted merchandise purchases from accounts payable Budgeted amounts: June July Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases August 31 $ 160,000 August
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