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Question 4 (15 marks) The garden supply company has the following business transaction estimates relating to the final quarter of 2021. Assume cash transactions

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Question 4 (15 marks) The garden supply company has the following business transaction estimates relating to the final quarter of 2021. Assume cash transactions where appropriate unless explained otherwise. October $ November December $ $ Total Sales - See note 1. 100,000 130,000 180,000 Receipts from Accounts Receivable To calculate - See note 2. Wages 30,000 35,000 40,000 Office Equipment 0 7,000 0 Lease Prepayment for 2021 0 0 4,000 Administrative Expenses 3,000 3,000 3,000 Accrued Expenses 0 0 8,000 Depreciation on Office Equipment 7,000 8,000 8,000 Maturing of Term Deposit 8,000 0 0 Credit Purchases 70,000 80,000 90,000 Payments of Accounts Payable To calculate - See note 3. Drawings 3,000 4,000 5,000 Notes 1. 30% of total sales are cash sales. 70% of total sales are on credit. 2. Actual receipts from Accounts Receivable are 62% of the previous month's credit sales and the balance owing is received in the following month. Actual credit sales were $70,000 in both August and September 2021. 3. Credit purchases on Accounts Payable are paid 78% in the month of purchase with the remainder paid in the month following. Credit purchases in September 2021 were $60,000. 4. Garden Supply's cash balance at 1 October 2021 was $555.

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