Ch 22 2nd H.W Sales Collections and cost of goods sold Budgeted sales and cost of goods sold for Blue House trading company during June, July and August 2020 are as follows: Sales Revenues Cost of goods sold June $ 20,000 $12,000 July $ 30,000 $18,000 August $ 46,000 $28,000 According to their performance during past 5 years the company's management set the following plans regarding sales, purchases and inventories: 80% of sales expected to be cash sales and the balance is expected to be credit sales. All the credit sales are expected to be collected during the following month of sales. The Company's management wishes to maintain ending inventory for each month equals to $8,000 plus 10% of cost of goods sold budgeted for the following month. Requirements: 1- Assume accounts receivables balance at the end of May 2020 is expected to be $5,000, Prepare the company's budgeted cash receipts for June and July. 2- Prepare the company's budgeted purchases for June and July