D. Tomlinson Retall 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 3,130 478, Cash Accounts receivable Inventories Accounts payable 1461 The firm follows these guidelines in preparing its budgets Sales. Al sales are on credit with terms of 3/10, n.30. Tomlinson bilis customers on the last day of each month The firm books receivables af 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 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 549s 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 s $20. Selling general and administrative (SG&A) expenses, of which $2.200 is depreciation, equal 15% of the current months Sales Actoal and projected sales follow Dolls 3.178, Month March April May 0811 3390.000 390.ee 393,000 11 18. 13 Month une By August ULTE 12,60 11.200 11,400 432, 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. A Determine gross and net balances of accounts receivable on May 31 Complete this question by entering your answers in the tabs below. 4 Pepo augue 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 a Required 4 Prepare schedules showing budgeted merchandise purchases for May and Juna. D. Tomlinson Retail Budgeted Merchandise Purchase May and June May June July Cost of Goods Sold 5 os $ Total needed $ 0 o Budgeted merchandise purchases 5 O $ Required 2 > - Prey mali 1. Prepare schedules showing budgeted merchandise purchases for May and June 2. Prepare a schedule showing budgeted cash disbursements curing June 3. Prepare a schedule showing budgeted cash collections during May 4. Determine gross and net balances of accounts receivable on May 1 Complete this question by entering your answers in the tabs below. Required Required 2 Required Prepare a schedule showing budgeted cash collections during May Tomlinson Retail CAN Collections May Within the discount period After the discount period Total cash collections $ 0
- Prey mali 1. Prepare schedules showing budgeted merchandise purchases for May and June 2. Prepare a schedule showing budgeted cash disbursements curing June 3. Prepare a schedule showing budgeted cash collections during May 4. Determine gross and net balances of accounts receivable on May 1 Complete this question by entering your answers in the tabs below. Required Required 2 Required Prepare a schedule showing budgeted cash collections during May Tomlinson Retail CAN Collections May Within the discount period After the discount period Total cash collections $ 0
