Drake Company Has the Following Information Purchases Are Paid for in the Following Manner: 10% in }

Drake Company has the following information: $$\begin{array} { l l } \text { Month } & \text { Budgeted Purchases } \\\text { January } & \$ 26,800 \\\text { February } & 29,000 \\\text { March } & 30,520 \\\text { April } & 29,480 \\\text { May } & 27,680\end{array}$$ Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase
Is the total estimated cash disbursement in May from the purchase of merchandise.

A) $29,716
B) $13,840
C) $25,632
D) $27,680

Correct Answer:

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