Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid for in the month following the purchase.

In Adi's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

• $760,000
• $532,000
• $228,000
• $588,000

Transcribed Image Text:

September. October........... $800,000 $920,000 November....... $840,000 December..... $760,000 September. October........... $800,000 $920,000 November....... $840,000 December..... $760,000

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