Star Moving Systems, Inc has provided the following details for direct materials purchased on account in different months
Jan $35,000
Feb 28,000
March 34,000
April 39,000
May 32,000
June 29,000
The terms of payment offered by the suppliers are to pay 70% in the month of purchase and 30% in the following month. Calculate the payments on account made during the first six months.
What will be an ideal response
Jan Feb March April May June
Purchases on account: $35,000 $28,000 $34,000 $39,000 $32,000 $29,000
Cash payments to suppliers:
In the month of purchase (70%) 24,500 19,600 23,800 27,300 22,400 20,300
In the next month: (30%) 10,500 8,400 10,200 11,700 9,600
Total payments to suppliers $24,500 $30,100 $32,200 $37,500 $34,100 $29,900
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