L & J Grocery Store is a retailer and merchandiser for daily food consumption needs.

Shown below is the Balance Sheet as of May $31$:

L & J Grocer Store

Balance Sheet

May $31$

The store is in the process of preparing a budget for June and has assembled the

following data:

Sales are budgeted at $P240,000$ for June and $P250,000$ for July. Of these sales,

$35\%$ will be for cash; the remainder will be credit sales. Forty percent of a month's

credit sales are collected in the month the sales are made, the remaining $60\%$ is

collected in the following mont. All of the May $31$ accounts receivable will be

collected in June.

The budgeted cost of goods sold is always $45\%$ of sales and the ending

merchandising inventory is always $30\%$ of the following months cost of goods sold.