What is the balance of accounts payable at May 31st? **Cash Disbursements Schedule**This table outlines the cash disbursements for the months of April, May, and June, along with the quarterly total. Below is a breakdown of the disbursements:1. **Accounts Payable as of March 31:** - **Quarter Total:** $12,0002. **April Purchases:** - 50% of $56,000 = $28,000 to be paid in April - 50% of $56,000 = $28,000 to be paid in May3. **May Purchases:** - 50% of $88,600 = $44,300 to be paid in May - 50% of $88,600 = $44,300 to be paid in June4. **June Purchases:** - 50% of $56,800 = $28,400 to be paid in June**Total Cash Disbursements:**- **April:** $40,000- **May:** $72,300- **June:** $72,700- **Quarter Total:** $185,000This schedule provides a comprehensive view of when and how much cash will be disbursed for outstanding accounts payable and new purchases across the three-month period.

Accounts payable balance should be as per terms of cash payment.It seems that 50 % of the payment is made in the same month and the remaining 50% is collected in the following month. So accounts payable in May should be 50% of May purchases. Accounts payable on 31 may = 88,600 * 50% = 44,300 The correct answer is $ 44,300

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Business

Accounting

What is the balance of accounts payable at May 31st?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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