Preparing an Accounts Payable Schedule Pilsner Inc. purchases raw materials on account for use in production. The direct materials ected purchases April May June Pilsner typically pays 25% on account in the month of billing and 75% the next month Required: 1. How much cash is required for payments on account in May? $374,400 411,200 416,000 2. How much cash is expected for payments on account in June?

How much cash is expected for payments on account in June? = $412,400.

Explanation:

Cash Required for expected payments on account in June

Pilsner Inc. pays 25% on account in the month of billing and the remaining 75% in the next month, therefore, for the month of June the total payment will include 75% of Purchases made in May and 25% of purchases made in June.

Purchases in May = $411,200

Purchases in June = $416,000

Total Payment for May = (75% of 411,200)+(25% of 416,000)

= $308,400 + $104,000

= $412,400.

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