Lough Company prepared the following purchasesbudget:June$40,000July$43,000August$39,000September $46,000October $49,100All purchases are paid for as follows: 20% two monthsafter purchase, 55% in the following month,and 25% in the month of purchase.What are the cash disbursements in October toaccount for the September purchases at LoughCompany?A) $25,300.B) $184,000.C) $8,000.D) $9,200.

Step 1:Cash budget is estimation of future cash inflows and outflow so that business can arrange…

Answered: Lough Company prepared the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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