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Mashcka [7]
3 years ago
5

Cat Co. forecasts merchandise purchases of $11,600 in January, $11,800 in February, and $15,400 in March; 40% of purchases are p

aid in the month of purchase and 60% are paid in the following month. At December 31 of the prior year, the balance of Accounts Payable (for December purchases) is $8,000. What is the cash disbursements for merchandise for the month of February
Business
1 answer:
Elis [28]3 years ago
3 0

Answer:

The cash disbursements for merchandise in February is $11680

Explanation:

The cash disbursements for merchandise in February will include the payment for 60% of merchandise purchases for January and 40% of merchandise purchases for February.

The amount of January purchases to be paid in February = 0.6 * 11600 = 6960

The amount of February purchases to be paid in February = 0.4 * 11800 = 4720

The total amount of cash disbursements in February fro merchandise is,

6960 + 4720  =  $11680

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In May, Pasta Disasta, Inc. paid its suppliers $500 that it owed for the pizza pans purchased and received in April. Which accou
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Based on the information given the account that are affected is:

  • $500 decrease in liabilities
  • $500 decrease in assets.

<h3>Accounts that are affected</h3>

Assuming the company paid its suppliers the amount of  $500 that it owed for the pizza pans they purchased and received in the month of April. Hence, liabilities account will decrease by $500 while the assets account will decrease by $500.

Thus:

  • $500 decrease in liabilities
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Inconclusion the account that are affected is:$500 decrease in liabilities, $500 decrease in assets.

Learn more about account affected here: brainly.com/question/14279491

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