Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs Expenses April  May June Selling and marketing expenses (i) $200,000 $250,000 $300,000 Office Insurance expense (ii) 800 800 800 Office depreciation expense 500 500 500 Property tax expense (iii) 700 700 700 Jenny’s payment policy for selling and administrative expenses is as follows: Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October). Property taxes are paid once a year in December. The cash payments for selling and admin expenses projected in the month of April are: Group of answer choices None of the above $202,000 $172,400 $204,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jenny Inc. has the following projected costs for the second quarter of 20YY:

Projected Costs
Expenses April  May June
Selling and marketing expenses (i) $200,000 $250,000 $300,000
Office Insurance expense (ii) 800 800 800
Office depreciation expense 500 500 500
Property tax expense (iii) 700 700 700

Jenny’s payment policy for selling and administrative expenses is as follows:

  1. Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses.
  2. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October).
  3. Property taxes are paid once a year in December.

The cash payments for selling and admin expenses projected in the month of April are:

Group of answer choices
None of the above
$202,000
$172,400
$204,400
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