All sales of Tracy's Jeans and Uniforms (TJU) are made on credit. Sales are billed twice monthly, on the fifth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. For accounts paid within the first 10 days after the billing date, TJU gives customers a 2% discount; otherwise the full amount is due within 30 days of the billing date, and customers that do not pay within the 10-day discount period generally wait the full 30 days before making payment. Based on past experience, the collection experience of accounts receivable is: (Click the icon to view the collection experience.) (Click the icon to view the sales budget.) TJU's average markup on its products is 40% of the sales price. TJU purchases merchandise for resale to meet the current month's sales demand and to maintain a desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit. TJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month Read the requirements Requirement 1. How much cash can TJU plan to collect from accounts receivable collections during July 20X8? July collections May sales billed June 5 $ 110,600 - X June sales billed June 20 113,400 Data Table June sales billed July 5 277,830 July sales billed July 20 339,570 Within the 10 day discount period 70 % At 30 days after billing 28 % Total July collections $ 841,400 Uncollectible 2 % Requirement 2. Compute the budgeted dollar value of TJU inventory on May 31, 20X8. X Cost of goods sold Required inventory % Required inventory Data Table $ 486,000 25 % $ 121,500 Requirement 3. How much merchandise should TJU plan to purchase during June 20X8? Sales for May 20X8 were $790,000. The forecast sales for the next 4 months are June Merchandise Purchases June $ 810,000 Desired ending inventory July 990,000 Add- Cost of goods sold August 940,000 Total merchandise needed September 660,000 Less Beginning inventory Required purchases