Cash $ 100,800 Accounts receivable 447,000 Inventories 280,600 Accounts payable 137,080 The firm follows these guidelines in preparing its budgets Sales. All sales are on credit with terms of 3/10, 1/30. Tomlinson bills customers on the last day of each month. The firm books receivables et gross amounts and collects 60% of the billings within the discount period, 25% by the end of the month and 9% by the end of the second month. The firm's experience suggests that 6% is likely to be uncollectible and is written off at the end of the third month Purchases and expenses. All purchases and expenses are on open account. The firm pays Its payables over a 2-month period with 2 54% paid in the month of purchase. Each month's units of ending inventory should equal 115% of the next month's cost of sales. The cost of each unit of Inventory is $20. Selling general, and administrative (SG&A) expenses, of which $1,200 is depreciation, equal 15% of the current month's sales Actual and projected sales follow: Month Dollars Units Month Dollars Units March $363,000 12,100 June $ 351.000 11,700 April 372,000 12,400 July 369,000 12,300 May 366,000 12,200 August 375,000 12,500 Required: 1. Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a schedule showing budgeted cash disbursements during Juno. 3. Prepare a schedule showing budgeted cash collections during May 4. Determine gross and net balances of accounts receivable on May 31. Required 1 Required 2 Required 3 Required 4 Prepare schedules showing budgeted merchandise purchases for May and June. D. Tomlinson Retail Budgeted Merchandise Purchases May and June May June July Cost of Goods Sold $ 0 $ 0 $ Total needed $ 0 $ 0 Budgeted merchandise purchases $ 0 $ 0 Required Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare a schedule showing budgeted cash disbursements during June. D. Tomlinson Retail Budgeted Cash Disbursements, June May June Total payables $ 0 $ 0 Budgeted cash disbursements $ $ 0