5. The following information pertains to the firm's client, Amigo Corporation: Month Purchases Sales July $30,000 $10,000 August 34,000 12,000 September 38,000 14,000 October 42,000 16,000 November 48,000 18,000 December 60,000 20,000 Cash is collected from customers in the following manner: Month following sale Month of sale (2% cash discount) 30% 50% Two months following sale 15% 5% Amount uncollectible 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.