Dry Fruit Grocers a Local Grocer Has Budgeted Inventory Purchases

Dry Fruit Grocers a local grocer has budgeted inventory purchases as follows: October: $300,000
November: $350,000
December: $390,000
Dry Fruit Grocers pays for 20% of their purchases during the month of purchase, 70% during the month following the purchase, and the remaining 10% two months after the month of purchase. What is the budgeted accounts payable balance on December 31?

A) $312,000
B) $347,000
C) $390,000
D) $425,000

Correct Answer:

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