Purchases on Account Are Given Below $$\begin{array} { l c c } \text { October } & \text { November } & \text { December } \\30,000 & 40,000 & 50,000\end{array}$$

question 108

Multiple Choice

Purchases on account are given below: $$\begin{array} { l c c } \text { October } & \text { November } & \text { December } \\30,000 & 40,000 & 50,000\end{array}$$ 55% of the month's purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month.
How much will the cash payments for purchases be in November?

• A) $35,500
• B) $34,500
• C) $40,000
• D) $36,000

---

Definitions:

Unearned Items

Revenues received by a company for which the goods or services have not yet been provided or completed.

General Journal

An accounting ledger where all types of transactions are initially recorded.

General Journal

A primary accounting record used to record all types of transactions before they are posted to specific accounts in the general ledger.

General Journal

A primary accounting record used to record all types of accounting transactions before they are posted to individual accounts in the general ledger.