Exercise 20-27A Merchandising: Computing budgeted purchases and costs of goods sold LO P4 Quick Dollar Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,200,000, June, $1,450,000, July, $1,400,000, and August $1,500,000 AccountsMerchandise Payable Inventory $260,000 August 31 200,000 400,000 200,000 May 31$160,000 une 30 July 31 120,000 350,000 1) Compute the budgeted amounts of merchandise purchases Budgeted amounts Ending accounts payabl Payments on account June July August Subtotal Beginning accounts payable Purchases (2) Compute the budgeted amounts of cost of goods sold June July Beginning invertory Purchases Cost of goods avalable for sale Ending inventory ,000 (200,000) (350,000) Cost of goods sold