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1. All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected

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1. All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in Juy. 2. All merchandise purchases are on account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is pald in the month after the purchase. The accounts receivable at June 30 will be paid in July 3. The budgeted inventory baiance at July 31 is $19,800 4. Depreciation expense is $3,300 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. 5. The company's cash budget for July shows expected cash coliections of $96,300, expected cash disbursements for merchandise purchases of $72,000, and cash paid for seling ond administrative expenses of $16,100

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