None 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 followingand 25% in the month of purchase.month,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: Define Cash DisbursementCash disbursements are the total cash payments that a company makes.…

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

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29. Use the following information for questions (29 to 32). The following information pertains to Adel Company Month Sales Purchases July P25,000 P10,000 August 10,000 2,500 September 15,000 5,000 October 12,500 4,000 November December 15,000 5,000 17,500 5,000 Forty percent of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Cash is collected from customers in the following manner. Month of sales 20% Month following sales 50% Two months following sales 25% Amount uncollectible 5% What is the amount collected from customers in September? а. Р14,250 b. P15,000 с. Р4,750 d. P13,000 30. What is the amount disbursed to suppliers in October? а. Р4,000 b. P4,600 с. Р5,200 d. P3.925 31. What is the amount disbursed to suppliers in November? a. P15,500 b. P5,400 C. P6.000 d. P4,400

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