Normal No Spac. Heading 1 Heading 2 Heading 3 Heading 4 Paragraph Styles . QUESTION 29 1. Brownsville Novelty Store prepared the following budget information for the month of May Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. Inventory was $84,000 on April 30, an inventory increase of $12,000 is planned for May 31 All inventory is marked to sell at cost plus 50 percent. Estimated cash disbursements for selling and administrative expenses for the month are $48,000 Depreciation for May is projected at $6,000. Brownsville's budgeted bad debts expense for May is: C$10,800 $7,560 $5,400 $7,200 $14,400. QUESTION 28 1. Boone Co.'s sales, based on past experience, are 30% cash and 70% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale On December 31, the accounts receivable balance is $75,000, of which $27.000 is from November sales. Total sales for January and February are budgeted to be $114,000 and $134,000, respectively. What are Boone Co.'s budgeted cash receipts for January? $133,120. $97.000 C$119,000 $84,800. C$100.420 Cl)