Torres Company budgets merchandise purchases of $15,800 in January, $17,600 in February, and $20,200 in March. For thosepurchases, 50% of purchases are paid in the month of purchase and 50% are paid in the month after the purchase. The companypurchased $21,000 of merchandise in December.Prepare a schedule of cash payments for merchandise for the months of January, February, and March.TORRES COMPANYCash Payments for Merchandise PurchasesJanuaryFebruaryMarchMerchandise purchases$ 15,800$ 17,600$ 20,200Cash payments for:Current period purchasesPrior period purchasesTotal cash payments for merchandise purchases

Schedule of Cash payments for Merchandise Purchases for May, April and June TORRES COMPANY Cash…

TORRES COMPANY Cash Payments for Merchandise Purchases January February March Merchandise purchases Cash payments for: $ 15,800 S 17,600 $ 20,200 Current period purchases Prior period purchases Total cash payments for merchandise purchases

TORRES COMPANY Cash Payments for Merchandise Purchases January February March Merchandise purchases Cash payments for: $ 15,800 S 17,600 $ 20,200 Current period purchases Prior period purchases Total cash payments for merchandise purchases

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...

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Question

Torres Company budgets merchandise purchases of $15,800 in January, $17,600 in February, and $20,200 in March. For those
purchases, 50% of purchases are paid in the month of purchase and 50% are paid in the month after the purchase. The company
purchased $21,000 of merchandise in December.
Prepare a schedule of cash payments for merchandise for the months of January, February, and March.
TORRES COMPANY
Cash Payments for Merchandise Purchases
January
February
March
Merchandise purchases
$ 15,800
$ 17,600
$ 20,200
Cash payments for:
Current period purchases
Prior period purchases
Total cash payments for merchandise purchases

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