The amount owing to suppliers for inventory purchases at the beginning of the year is $118,000 and at the end of the year is $94,000. If total credit purchases of inventory for the year are $160,000, the cash paid to suppliers of inventory for the year is:$184,000$254,000$66,000$278,000
Question
The amount owing to suppliers for inventory purchases at the beginning of the year is 94,000. If total credit purchases of inventory for the year are 184,00066,000$278,000
Solution
To calculate the cash paid to suppliers, you need to add the beginning balance of the amount owed to suppliers to the total credit purchases made during the year, and then subtract the ending balance of the amount owed to suppliers.
Here's the calculation:
Cash paid to suppliers = Beginning balance of accounts payable + Credit purchases - Ending balance of accounts payable
Cash paid to suppliers = 160,000 (credit purchases) - 184,000
So, the cash paid to suppliers of inventory for the year is $184,000.
Similar Questions
A supplier offers a company terms 3/10, n/30 for a $10,000 purchase on account on January 1. The company uses a perpetual inventory system to record transactions. If the company makes the payment on January 10, the entry to record the payment will include a:Multiple ChoiceDebit to Accounts Payable for $300Credit to Inventory for $300Debit to Accounts Payable for $9,700Credit to Cash for $10,000
An entity just starting business made the following four inventory purchases in June: June 1 150 units $1,500 June 10 130 units 1,170 June 15 90 units 1,260 June 23 110 units 990 $4,920A physical count of inventory on June 30 reveals that there are 20 units on hand. Using the weighted average cost method the amount allocated to the ending inventory on June 30 is:Question 5Answera.$205b.$180c.$220d.$200
A company plans to purchase inventory for the second half of 2014 as follows:July $100,000August $75,000September $225,000October $125,000November $250,000December $30,000They usually pay 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.Based on this information, what are the forecasted total 2014 cash payments for inventory purchased in the second half of 2014? $705,000 $752,500 $790,000 $805,000
For the current fiscal year, Purchases were $270,000, Purchases Returns and Allowances were $4,200 and Freight In was $21,000. If the beginning merchandise inventory was $170,000 and the ending merchandise inventory was $87,000, the Cost of Goods Sold is:
Use the following inventory information for the month of July to answer the below question. July 1 Beginning inventory 20 units at $19 $380 July 7 Purchases 70 units at $20 $1 400 July 22 Purchases 10 units at $22 $220 $2 000 A physical count of inventory on July 30 reveals that there are 35 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is: Group of answer choices $680. $720. $1 280. $1 320.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.