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Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $298,000 in December, $236,000 in January, and $232,000 in February. What is the balance in accounts payable for January 31, and February 28?     Ending Balance January   $fill in the blank 1 February   fill in the blank 2

Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $298,000 in December, $236,000 in January, and $232,000 in February. What is the balance in accounts payable for January 31, and February 28?     Ending Balance January   $fill in the blank 1 February   fill in the blank 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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    Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $298,000 in December, $236,000 in January, and $232,000 in February. What is the balance in accounts payable for January 31, and February 28?

        Ending Balance
    January   $fill in the blank 1
    February   fill in the blank 2
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