Garda purchased $520,000 of merchandise in August and budgets merchandise purchases of $680,000 in September. Merchandise purchases are paid as follows: 35% in the month of purchase and 65% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases September $ 680,000 Merchandise purchases Cash payments for Current period purchases Prior period purchases Total cash payments for merchandise purchases

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Garda purchased $520,000 of merchandise in August and budgets merchandise purchases of $680,000 in September. Merchandise
purchases are paid as follows: 35% in the month of purchase and 65% in the month after the purchase.
Prepare a schedule of cash payments for merchandise purchases for September.
GARDA
Schedule of Cash Payments for Merchandise Purchases
Merchandise purchases
Cash payments for:
Current period purchases
Prior period purchases
Total cash payments for merchandise purchases
September.
$
$
680,000
Transcribed Image Text:Garda purchased $520,000 of merchandise in August and budgets merchandise purchases of $680,000 in September. Merchandise purchases are paid as follows: 35% in the month of purchase and 65% in the month after the purchase. Prepare a schedule of cash payments for merchandise purchases for September. GARDA Schedule of Cash Payments for Merchandise Purchases Merchandise purchases Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases September. $ $ 680,000
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