Sports Socks has a policy of always paying within the discount period and each of...
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Accounting
Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $125,000 in November, $291,000 in December, $246,000 in January, and $230,000 in February. What is the balance in accounts payable for January 31, and February 28?
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