Lough Company prepared the following purchases budget: June $40,000 July $43,000 August $39,000 September $46,000 October $49,100 All purchases are paid for as follows: 20% two months after purchase, 55% in the following month, and 25% in the month of purchase. What are the cash disbursements in October to account for the September purchases at Lough Company? A) $25,300. B) $184,000. C) $8,000. D) $9,200.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Lough Company prepared the following purchases
budget:
June
$40,000
July
$43,000
August
$39,000
September $46,000
October $49,100
All purchases are paid for as follows: 20% two months
after purchase, 55% in the following month,
and 25% in the month of purchase.
What are the cash disbursements in October to
account for the September purchases at Lough
Company?
A) $25,300.
B) $184,000.
C) $8,000.
D) $9,200.
Transcribed Image Text:Lough Company prepared the following purchases budget: June $40,000 July $43,000 August $39,000 September $46,000 October $49,100 All purchases are paid for as follows: 20% two months after purchase, 55% in the following month, and 25% in the month of purchase. What are the cash disbursements in October to account for the September purchases at Lough Company? A) $25,300. B) $184,000. C) $8,000. D) $9,200.
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