Thornton Books buys books and magazines directly from publishers and distributes

Question

Thornton Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory: April May $117,000 $137,000 $149,000 June Required purchases (on account) Thornton Books's accountant prepared the following schedule of cash payments for inventory purchases. Thornton Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase Required 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 ARequired B Complete the schedule of cash payments for inventory purchases by filling in the missing amounts Schedule of Cash Payments for Inventory Purchases May April $ 105,300 June Payment for current accounts payable Payment for previous account Total budgeted payments for inventory s payable 6,000 $111,300

Explanation / Answer

April May June Payment for current accounts payable 105300 123300 134100 Payment for previous accounts payable 6000 11700 13700 Total budgeted payments for inventory 111300 135000 147800 b Accounts Payable = 149000*10% = $14900

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.