Ahmed merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,300,000; June, $1,450,000; July, $1,300,000; and August, $1,500,000 Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and Accounts Merchandise Payable Inventory $110,000 $290,000 150,000 200,000 400,000 500,000 130,000 390,000 May 31 June 30 July 31 August 31 (1) Compute the budgeted amounts of merchandise purchases. July August Budgeted a June Ending accounts payable Payments on account Subtotal Beginning accounts payable (2) Compute the budgeted amounts of cost of goods sold. July Budgeted amounts August June Beginning inventory Cost of goods available for sale Ending inventory Cost of goods sold (200,000) (500,000) (390,000)