3, (Budgeting) 25 Marks Higym Co's fiscal year begins on April 1 The following DR CR Cash $3,500 Accounts Receivable$27,200 Bad Debt Allowance 52.240 Inventory Merchandise $16,000 Accounts Payable Merchandise$7.000 extract from a trial balance at May 31, 2019 Data concerning company's purchase of merchandise inventory Purchase price per unit $8 75% of any month's purchases an payabin 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 $49,000 564,000 $56.000 30% of billings are collected during the month of sale, 40% in the following month in the next following calendar month and 3% is uncollectable Customers are allowed a 2% cash discount payment is made by the end of the calendar men in which the sales took place Selling and administrative expenses cat and dot exan I Total selling and admin expenses for fiscal year J Total fixed selling & admin expenses for fiscal year (included in tota curred evenly throughout the year Annual amortization expense edude ted