Garda purchased $700,000 of merchandise in August and budgets merchandise purchases of $720,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% 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 Merchandise purchases 720,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases

Garda purchased $700,000 of merchandise in August and budgets merchandise purchases of $720,000 in September. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% 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 Merchandise purchases 720,000 Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...

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Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
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