Exercise 21-17 LRF Companys budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $277,000 $41,550 February 304,700 48,475 March 373,950 56,785 LRFs sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. LRFs purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Exercise 21-17 LRF Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January February March $277,000 304,700 373,950 $41,550 48,475 56,785 LRFs sales are 30% cash and 70% credit Credit sales are collected 10% in the month of sale, 50% in the month following sale and 36% in the second month following sale; 4% are uncollectible. LRF's purchases are 50% cash and 50% on account Purchases on account are paid 40% n the mont of purchase and 60% in the month following purchase