Correy Company reported the following information for 2013: - 13376

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Request Description

Correy Company reported the following information for 2013:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
• Cost of goods sold is 35% of sales.
• Correy purchases and pays for merchandise 60% in the month of acquisition and 40%
in the following month.
• Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2013?
$96,000

$144,000
$102,400
$204,000

Solution Description

Correy Company reported the following information for 2013:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000