Giant Koala Stores Inc has forecasted sales for July through October in the top row of the table. Purchases are 65% of sales. All purchases are made one month in advance of the sale
Ten percent (10%) of suppliers are paid in the month of purchase and the remainder are paid in the following month. What are Giant Koala's payments to suppliers in September?
Sales Forecast, Purchases and Payments to Suppliers
Giant Koala Stores Inc ($000,000)
July August September October
Sales Forecast $18.000 $18.000 $22.000 $21.000
Purchases from Suppliers 11.700 14.300
Payments to Suppliers 1.170 1.430
Payments to Suppliers from last Month 12.870
Total Payments to Suppliers
A) $11.313 million
B) $11.625 million
C) $12.456 million
D) $14.235 million
E) $15.4 million
D
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When the conventional retail inventory method is used, markdowns are commonly ignored in the computation of the cost to retail ratio because
a. there may be no markdowns in a given year. b. this tends to give a better approximation of the lower of cost or market. c. markups are also ignored. d. this tends to result in the showing of a normal profit margin in a period when no markdown goods have been sold.
The posting reference column of the general journal is used to
A. record the date on which an amount is posted to a ledger account B. record the page number of the ledger account C. record the number of amounts posted to that ledger account since the beginning of the current accounting period D. record the number of the ledger account to which the information is posted