3, (Budgeting) 25 Marks Higym Co's fiscal year begins on April 1. The following is an extract from a trial balance at May 31, 2019: Cash $3,500 DR Accounts Receivable$27,200 Inventory Merchandise $16,000 Bad Debt Allowance Accounts Payable Merchandise$7,000 CR $2,240 Data concerning company's purchase of merchandise inventory: Purchase price per unit $8 75% of any month's purchases ae payable in the month of purchase while the rest is due and paid for in the following month. At end of each month the company's policy is to have an inventory equal to 50% of the following month's unit sales. Sales Data: Selling price per unit April actual sales revenue May actual sales revenue June estimated sales revenue July estimated sales revenue Total sales expected in fiscal year $16 $32,000 $48,000 564,000 $56,000 $800,000 50% of billings are collected during the month of sale, 40% in the following month, 7% in the next following calendar month and 3% is uncollectable. Customers are allowed a 2% cash discount if payment is made by the end of the calendar month in which the sales took place. Selling and administrative expenses (exclusive of bad debt expenses): $ # 0