9 Exercise 20-28A Merchandising: Computing budgeted purchases and cost of goods sold LO P4 10 Ahmed Company purchases ott merchandise on credit. It recently budgeted the month-end accounts payable balances and merchandise inventory balances below. Cosh payments on accounts payable during each month are expected to be May, 51.300,000 June, $1,400.000; July $1.400,000, and August $1,500,000 Account Merchand Payable Inventory 110,000 $200,000 June 30 140,000 300,000 July 31 200,000 100,000 Aut 1 140.000 330.000 May 31 Book Hint (1) Compute the budgeted amounts of merchandise purchases. budget amounts July Enting accounts payable Payments on account Subtotal Beginning accounts payable Purchases Hufrences August (2) Compute the budgeted amounts of cost of goods sold Nudgeted July Beginning inventory Purchases Cost of goods available for sale Ending inventory (300.000) (100,000 Cost of goods sold (330,000)