The following budgeted information about Reeves Co. is available for September 2010: Sales for September ..................... $2,700,000

Question:

The following budgeted information about Reeves Co. is available for September 2010:
Sales for September ..................... $2,700,000
Gross profit on sales .................... 40%
Decrease in Merchandise Inventory during September ........ $43,750
Wages expense for September ................. $325,500
Increase in Wages Payable for September .............. $42,000
Other cash expenses for September .............. ... $245,000
Decrease in during September ........... $35,000
Reeves Co. only uses its for inventory purchases.
a. How much does Reeves Co. expect to pay for inventory in September 2010?
b. What are total budgeted cash disbursements for September 2010?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...