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Correy Company reported the following information for 2022: October November December Budgeted sales $460,000 $440,000 $540,000 Budgeted $240,000 $256,000 $288,000 purchases • All sales are on credit. • Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Purchases are paid for 60% in the month of acquisition and 40% in the following month. • Accounts payable is used only for inventory acquisitions. What is the budgeted balance for Accounts Payable at October 31, 2022? A) $96,000

Correy Company reported the following information for 2022: October November December Budgeted sales $460,000 $440,000 $540,000 Budgeted $240,000 $256,000 $288,000 purchases • All sales are on credit. • Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Purchases are paid for 60% in the month of acquisition and 40% in the following month. • Accounts payable is used only for inventory acquisitions. What is the budgeted balance for Accounts Payable at October 31, 2022? A) $96,000

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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Correy Company reported the following information for 2022: October November December Budgeted sales $460,000 $440,000 $540,000 Budgeted $240,000 $256,000 $288,000 purchases • All sales are on credit. • Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Purchases are paid for 60% in the month of acquisition and 40% in the following month. • Accounts payable is used only for inventory acquisitions. What is the budgeted balance for Accounts Payable at October 31, 2022? A) $96,000
Transcribed Image Text:Correy Company reported the following information for 2022: October November December Budgeted sales $460,000 $440,000 $540,000 Budgeted $240,000 $256,000 $288,000 purchases • All sales are on credit. • Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Purchases are paid for 60% in the month of acquisition and 40% in the following month. • Accounts payable is used only for inventory acquisitions. What is the budgeted balance for Accounts Payable at October 31, 2022? A) $96,000
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