Chapter 18, Problem 8QP

a)

Summary Introduction

To determine: The payable amount

Introduction:

Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:

$\text{Accounts payable period}=\frac{\text{No of days or months}}{\text{Payable turnover}}$

b)

Summary Introduction

To determine: The payable amount when payable period is 90 days

Introduction:

Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:

$\text{Accounts payable period}=\frac{\text{No of days or months}}{\text{Payable turnover}}$

c)

Summary Introduction

To determine: The payable amount when payable period is 60 days.

Introduction:

Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:

$\text{Accounts payable period}=\frac{\text{No of days or months}}{\text{Payable turnover}}$