Alyssum,Inc The Vendors Have Required the Following Terms of Payment

Alyssum,Inc.,a merchandising company,has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | c | c | c | } \hline & \text { Jan } & \text { Feb } & \text { March } \\\hline \text { Purchases on account } & \$ 264,000 & \$ 295,000 & \$ 320,000 \\\hline\end{array}$$ The vendors have required the following terms of payment:
$$\begin{array} { | l | l | } \hline \text { Month of purchase } & 30 \% \\\hline \text { First month after the purchase } & 35 \% \\\hline \text { Second month after the purchase } & 35 \% \\\hline\end{array}$$ Calculate the total payment on account for the month of March.

A) $168,275
B) $136,955
C) $320,000
D) $291,650

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free