Answer:
d. $6,020
Explanation:
It is provided that payments to vendor that is accounts payable will be made 50% in the month of purchase and 50 % in upcoming month.
That is outstanding balance at any month end will be 50% of purchases of that month.
Here, opening balance of accounts payable = $6,500
This will be paid in January
Assuming this is 50% of purchases of December
Now purchase in January = $12,040
50% paid in January itself = $12,040 [tex]\times[/tex] 50% = $6,020
50% outstanding at month end = $12,040 [tex]\times[/tex] 50% = $6,020
Therefore correct option is
d. $6,020
