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I was wondering, do you have a simpler method in solving the question below, or a layout to solving questions like this one? am failing to understand what the question is requestingfor. 16.22 The following details have been extracted from the payables’ records of X Co:
Invoices paid in the month of purchase 25%
Invoices paid in the first month after purchase 70%
Invoices paid in the second month after purchase 5%
Purchases for July to September are budgeted as follows:
July $250,000
August $300,000
September $280,000
For suppliers paid in the month of purchase, a settlement discount of 5% is received. What is the
amount budgeted to be paid to suppliers in September?
A $278,500
B $280,000
C $289,000
D $292,500 (2 marks)As per the instructions in the question, in September they will pay 25% of Septembers invoices (less a 5% discount), plus 70% of August’s invoices, plus 5% of July’s invoices.
but the $250,000 is charged 3 times. its not what it means in the sentence. (e.g) $250,000 x25% in july then again $250,000 x 70% in August…after reading the question the first time..i was suprised at the way the charged each month. its not that straight foward.
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