Clare Corporation Has the Following Information Purchases Are Paid for in the Following Manner: 40% in

question 140

Multiple Choice

Clare Corporation has the following information: $\begin{array}{lr}\text { Month } & \text { Budgeted Purchases } \\\hline \text { August } &\$ 40,000 \\\text { September } &38,000 \\\text { October } &43,500 \\\text { November } &36,500 \\\text { December } &46,000 \\\end{array}$ Purchases are paid for in the following manner: 40% in the month of purchase
50% in the month after purchase
10% two months after purchase
_____ is the estimated cash disbursement in September from August purchases.

• A)$7,000
• B)$10,500
• C)$19,000
• D)$20,000

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