Virginia enterprises makes all purchases on account subject...

Virginia Enterprises makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 30% Paid in the first month following purchase: 65% Paid in the second month following purchase: 5% If purchases for April, May, and June were $200,000, $160,000, and $250,000, respectively, what was the firm's budgeted payables balance on June 30

Transcript

00:01 The given information pertaining to the budgeted figures, i'll just use bd, gt, short for budget.

00:10 And we're looking at the budget payables.

00:15 So this business actually has information pertaining to sales or the budgeted sales for april, may and june.

00:28 The information given is that the amount paid in the month, paid in the month of purchase should be collected within the month 30%.

00:41 Okay, so paid in the first month following purchase would be 65%.

00:47 And paid in the second month following the purchase would be 5%.

00:54 So the information provided is if purchases for april, may, and june were $200 ,000, $160 ,000 and $250 ,000, respectively, what was the firm's budgeted payables balance on the 30th of june, so the last month, the last period, the last month, the last day of the last month.

01:18 So obviously, we just need to look at the following information that these are.

01:25 30 % within the month and then there's 65 % in the month following the month of purchase and then there's 5%.

01:36 And we have three months under review.

01:40 We have april and then may and then june.

01:44 So we basically just want to look at how much was collected in each.

01:48 So the sales for june well, okay, so for april is 200 ,000.

02:00 And for may is given as 160 ,000.

02:08 And for june, it is given as 25 ,000.

02:12 That is the information that is given.

02:14 All right.

02:15 So with that information, those are the purchases.

02:19 Okay, not 225 ,000, rather, is a big pardon, 250 ,000.