D. Tomlinson Retail seeks your assistance in developing cash and other budget information for May, June, and July. The store expects to have the following balances at the end of April: Cash 5,800 984,000 690,000 309,626 Accounts receivable Inventories Accounts payable The firm follows these guidelines in preparing its budgets: Sales. All sales are on credit with terms of 3/10, n/30. Tomlinson bills customers on the last day of each month. The firm books receivables at 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 54% paid in the month of purchase. Each month's units of ending inventory should equal 125% of the next month's cost of sales. The cost of each unit of inventory is $40. Selling, general, and administrative (SG&A) expenses, of which $2,900 is depreciation, equal 15% of the current month's sales. Actual and projected sales follow Units 13,700 14,000 13,800 Units Month Dollars Month Dollars March $822,000 840,000 828,000 $798,000 834,000 846,000 13,300 13,900 14,100 June April July August ay Required: Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a schedule showing budgeted cash disbursements during June. 3. Prepare a schedule showing budgeted cash collections during May. 4. Determine gross and net balances of accounts receivable on May 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 3 Prepare schedules showing budgeted merchandise purchases for May and June. D. Tomlinson Retail Budgeted Merchandise Purchases May and June July May June $ Cost of Goods Sold 0 0 0 Total needed $ $ 0 C 0 Budgeted merchandise purchases 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 S 0 0 Budgeted cash disbursements Required 1 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a schedule showing budgeted cash collections during May. D. Tomlinson Retail Cash Collections May Within the discount period After the discount period $ 0 Total cash collections Required 3