Adi Manufacturing Corporation Is Estimating the Following Raw Material Purchases

Multiple Choice

Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid for in the month following the purchase. In Adi's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

A) $760,000
B) $532,000
C) $228,000
D) $588,000