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 Accounts receivable inventories Accounts payable $4,700 1,352,800 800, 100 429,571 The firm follows these guidelines in preparing its budgets Sales. Al 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 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 BAN paid in the month of purchase. Each month's units of ending Inventory should equal 105% of the next month's cost of Fles. The cost of each unit of inventory s $60. Selling general, and administrative (SSA) expenses, of which $1700 is depreciation, equal Arne current months sales and projected sales follow UNTER month 011 100 ALS 12 Required budget me esito May and pune during Rudiere Bola OMOV Hesus HIMA Frey HII The firm follows these guidelines in preparing its budgets - Soies. All sales are on credit with terms of 3/10.1730. Tomlinson bills customers on the last day of each month The firm books receivables at gross announts 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 puys Its payables over a 2-month period with 54% paid in the month of purchase. Each month's units of ending inventory should equal 105% of the next month's cost of sales Th cost of each unit of inventory is $60. Selling. general, and administrative (SG&A) expenses, of which $1700 is depreciation, equal 15% of the current month's sales Actual and projected sales follow UNIN 12200 th March Apr IMAY Dollars S 134, 1.161,900 1,143,000 Units 12,600 1290 12,700 Month June July August Dollart $1,098,00 1.152 1,17000 13 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, A Determine gross and net balances of accounts receivable on May 31 Complete this question by entering your answers in the tabs below. Prev A4u IN 54% pald in the month of purchase. Each month's units of ending Inventory shoul- cost of each unit of Inventory is $60. Selling, general, and administrative (SG&A) 15% of the current month's sales. Actual and projected sales follow: Month March April May Dollars $1,134,000 1,161,000 1,143,000 Units 12,600 12,900 12,700 Month June July August Dollars $1,098,000 1,152, eee 1,170,000 Units 12,200 12,800 13,eee Required: 1. 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.