Magnolia Candle Co. pays 10% of its purchases on account in the month of the purchase and 90% in the month following the purchases. If purchases are budgeted to be $11900 for March and $12700 for April, what are the budgeted cash payments for purchases on account for April? Below is the following in what I did. Collections from march sales (90% x 11900 = 10710. Collections for April sales (10% x 12700 = 1270 Total sales are (10710+1270) = 11980. How is this the wrong answer in solving this problem?

Magnolia Candle Co. pays 10% of its purchases on account in the month of the purchase and 90% in the month following the purchases. If purchases are budgeted to be $11900 for March and $12700 for April, what are the budgeted cash payments for purchases on account for April? Below is the following in what I did. Collections from march sales (90% x 11900 = 10710. Collections for April sales (10% x 12700 = 1270 Total sales are (10710+1270) = 11980. How is this the wrong answer in solving this problem?

comprehension is important but I would have given the same mathematical answer excepting I would not have referred to sales but purchases