Purchases in May Were $65,000, While Expected Purchases for June

question 145

Multiple Choice

Purchases in May were $65,000, while expected purchases for June and July are $80,000 and $95,000, respectively. All purchases are paid 35% in the month of purchase and 65% in the following month. At what amount are June payments for purchases budgeted?

• A)$74,750
• B)$70,250
• C)$84,000
• D)$103,500

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Definitions:

Chemical Processes

Involves changes in chemical substances through reactions, leading to the formation of new substances.

Secondary Sewage Treatment

A stage in wastewater treatment involving biological processes to degrade organic matter, following primary treatment which mainly removes solid materials.

Biological Process

Natural processes involving living organisms, such as growth, reproduction, and metabolism.

Detergents

Chemical compounds used to remove dirt, stains, and other substances by lowering the surface tension of water, commonly found in cleaning products.