Dental Imported From Edge l Exam Help Gibson Books buys books and magazines dire
ID: 2437776 • Letter: D
Question
Dental Imported From Edge l Exam Help Gibson Books buys books and magazines directly from publishers and distributes them to grocery stores. The whiolesaler expects to purchase the following inventory AprilMay $181,800 $121, $133,09 Required purchases (on account) Gibson Books's require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month accountant prepared the following schedule of cash payments for inventory purchases. Gibson Books's suppliers 0258-12 following the month of purchase. Required Book a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter Complete this question by entering your answers in the tabs below Required A Required B Complete the schedule of cash payments for inventory purchases by filing in the missing amounts. Schedule of Cash Payments for Inventory Purchases April May June S 90,900 15,000 Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory 105,900 Required B Prey 6 of 19l Next >Explanation / Answer
given information -
90% amount of required purchase be paid in the month of purchase and the remaining 10% are paid in the month following the month of purchase means next month.
for example, April month purchase is to be paid in two installment first 90% of 101000 = 90900 in the month of April and 101000*10% = 10100 in may.
(B) Amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter = 10% of june months required purchase
= 133000*10%
= 13300
only this amt. is left to be paid.
Pleases comment in case of any clarification.
April May June Required purchase on account 101000 121000 133000Related Questions
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