Donald Company expects its purchases for June to be 130,000 and its purchases for July to be 124,000. Donald pays for 60% of its purchases in the month of purchase and receives a 2% discount. donald pays for the remaining 40% in the next month without discount. For purchases only, what are the expected cash payment in July? A. 124,912 B. 127,392 C. 124,000 D. 124,400
Donald Company expects its purchases for June to be 130,000 and its purchases for July to be 124,000. Donald pays for 60% of its purchases in the month of purchase and receives a 2% discount. donald pays for the remaining 40% in the next month without discount. For purchases only, what are the expected cash payment in July? A. 124,912 B. 127,392 C. 124,000 D. 124,400
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EA: Dream Big Pillow Co. pays 65% of its purchases in the month of purchase, 30% the month after the...
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Donald Company expects its purchases for June to be 130,000 and its purchases for July to be 124,000. Donald pays for 60% of its purchases in the month of purchase and receives a 2% discount. donald pays for the remaining 40% in the next month without discount. For purchases only, what are the expected cash payment in July?
A. 124,912
B. 127,392
C. 124,000
D. 124,400
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