Tolga Moving Systems,Inc The Terms of Payment Offered by the Suppliers Are to Purchased

question 8

Essay

Tolga Moving Systems,Inc.has provided the following details for direct materials purchased on account in different months.
$\begin{array}{ll}\text { Jan } & \$ 35,000 \\\text { Feb } & 28,000 \\\text { March } & 34,000 \\\text { April } & 39,000 \\\text { May } & 32,000 \\\text { Iune } & 29,000\end{array}$ The terms of payment offered by the suppliers are to pay 70% in the month of purchase and 30% in the following month.Calculate the payments on account made during the first six months.

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Definitions:

Repossessed

The act of taking back an asset, typically used when a borrower fails to make payments on a secured loan.

Deferred Gross Profit

Profit on installment sales that is not recognized immediately but deferred and recognized as payment is received.

Balance Sheet

An overview of a company's financial status, showcasing assets, financial obligations, and the stake of its shareholders at a precise moment.

Current Asset

Any asset expected to be converted into cash or used up within one business cycle or a year, including cash, inventory, and accounts receivable.