Question

Simone Company reported the following information for 2020:          September October November December January Budgeted sales $240,000...

Simone Company reported the following information for 2020:         

September

October

November

December

January

Budgeted sales

$240,000

$310,000

$290,000

$360,000

$200,000

Budgeted purchases

$90,000

$120,000

$128,000

$144,000

$88,000


Available information:

  1. Cost of goods sold is 35% of sales.
  2. Simone purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
  3. Accounts payable is used only for inventory acquisitions.

How much is the budgeted balance for Accounts Payable at October 31, 2020?

Select one:

a. $48,000

b. $72,000

c. $102,000

d. $51,200

e. None of the above

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