Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances Cash payments on accounts payable during each month are expected to be May. $1,600,000, June, $1,490,000; July $1,425,000, and August $1,495.000 Accounts Merchandise Payable Inventory May 31 $150,000 $ 250,000 June 30 200,000 400,000 July 31 235,000 300,000 August 19 195,000 330,000 31 August (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable Payments on account Subtotal 0 0 Beginning accounts payable 1 Purchases S 0S 0 August (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June July Beginning inventory Purchases Cost of goods available for sale Ending inventory (400,000) (300,000) Cost of goods sold (330,000) Next