Meyer Co. forecasts merchandise purchases of $15,800 in January, $18,600 in February, and $20,200 in March; 40% of purchases are paid in the month of purchase and 60% are paid in the following month. At December 31 of the prior year, the balance of Accounts Payable (for December purchases) is $22,000. Prepare a schedule of cash disbursements for merchandise for each of the months of January, February, and March. Solution Schedule of Cash Disbursement: .

1. Meyer Co. forecasts merchandise purchases of $15,800 in January, $18,600 in February, and
$20,200 in March; 40% of purchases are paid in the month of purchase and 60% are paid in the
following month. At December 31 of the prior year, the balance of Accounts Payable (for
December purchases) is $22,000. Prepare a schedule of cash disbursements for merchandise for
each of the months of January, February, and March.
Solution
Schedule of Cash Disbursement:
Total January February March Payable March31
December 31 Account Payable $22,000 22,000 - - -
Merchandise Purchase in:
January 15,800 6,320 9,480 - -
February 18,600 - 7,440 11,160 -
March 20,200 - - 8,080 12,120
Total 28,320 16,920 19,240 12,120