Rivera Company prepared the following purchases budget: April: $35,000 May: $38,000 June: $42,000 July: $45,000 August: $40,000 All purchases are paid for as follows: 30% in the month of purchase, 60% in the following month, and 10% two months after purchase. What are the cash disbursements in July to account for the June purchases at Rivera Company? A) $22,800 B) $25,200 C) $12,600 D) $4,200

Rivera Company prepared the following purchases budget: April: $35,000 May: $38,000 June: $42,000 July: $45,000 August: $40,000 All purchases are paid for as follows: 30% in the month of purchase, 60% in the following month, and 10% two months after purchase. What are the cash disbursements in July to account for the June purchases at Rivera Company? A) $22,800 B) $25,200 C) $12,600 D) $4,200

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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