Use the following information for questions (29 to 32). The following information pertains to Adel Company Month Sales Purchases July P25,000 P10,000 August 10,000 2,500 September 15,000 5,000 October 12,500 4,000 November 15,000 5,000 December 17,500 5,000 Forty percent of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Cash is collected from customers in the following manner
Use the following information for questions (29 to 32). The following information pertains to Adel Company
|
Month |
Sales |
Purchases |
|---|---|---|
|
July |
P25,000 |
P10,000 |
|
August |
10,000 |
2,500 |
|
September |
15,000 |
5,000 |
|
October |
12,500 |
4,000 |
|
November |
15,000 |
5,000 |
|
December |
17,500 |
5,000 |
Forty percent of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Cash is collected from customers in the following manner
Month of sales 20%
Month following sales 50%
Two months following sales 25%
Amount uncollectible 5%
1. What is the amount disbursed to suppliers in November?
2. If Adel allows a 2 percent cash discount if collected in the month of sale, it is
expected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the new percentages?
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