Use the Following Information for the Next 2 Questions

question 112

Multiple Choice

Use the following information for the next 2 questions.
Bynsel, Inc., a retailer, projects the following purchases and sales of its product for the next 4 months: Each unit costs $100, and all purchases are on account. Two-thirds of purchases are paid in the month of the purchase and one-third are paid in the month following the purchase. Bynsel gets a 3% discount whenever it pays in the month of the purchase. The selling price per unit is $200. Sales are 60% cash and 40% on customer credit cards. The bank charges Bynsel a 5% fee for each credit card transaction and transfers the funds to Bynsel's checking account on the same day as the credit card sale.
-What are cash disbursements for the third month?

• A) $36,367
• B) $23,033
• C) $33,333
• D) $32,733

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Definitions:

Journalize Entry

A process in accounting that involves recording transactions and financial events in a journal as part of the double-entry bookkeeping system.

Limited Liability Company

A form of business organization that unites the personal tax treatment of a partnership or sole proprietorship with the limited legal responsibility associated with corporations.

Tax Purposes

For tax purposes refers to the specific reasons or objectives related to the calculation and payment of taxes to comply with tax laws.

Elect

To choose or select someone or something for a specific role or position through a vote or decision-making process.