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

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

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