Tech Haven Electronics, located in the heart of a university campus, experiences peak sales during the

start of semesters in February and July, followed by a gradual decline. Under the guidance of Maria, the

store manager, and with James, the accountant preparing the budgets, the following data has been

compiled for the third quarter of $2024$:

Sales and Inventory Budgeted Information for Quarter $3,2024$:

Budgeted Selling and Purchase Prices per Unit:

Product Budgeted Selling

Price per Unit Budgeted Purchase

Price per Unit

Laptops $$800$ $$600$

Smartphones $$600$ $$500$

Tablets $$400$ $$350$

Projected Sales and Inventory Purchases:

Product

July

Sales

Units

July

Purchase

Units

August

Sales

Units

August

Purchase

Units

September

Sales

Units

September

Purchase

Units

Laptops $14010011012080140$

Smartphones $15015010016070180$

Tablets $15010012012040120$

Additional Information:

$$ Introduction of Credit Sales: The store will begin offering credit sales in Q$32024.$ It is expected

that $20\%$ of the revenue will come from credit sales. For credit sales, $60\%$ is expected to be

collected in the month of sale, $30\%$ in the following month, with the remaining $10\%$ anticipated

to remain uncollectible.

$$ Payment for Purchases: All inventory purchases are paid in the subsequent month. Purchases in

June $2024$ amounted to $$200,000.$

$$ Insurance Expense: An annual insurance payment of $$2,500$ is due and paid for in September.

$$ Maintenance and Repairs Expenses: $$1,500$ is due and paid in August.

$$ Monthly Expenses: The store incurs the following monthly expenses, paid within the same month:

o Salaries: $$5,000$ per month.

o Rent: $$2,000$ per month.

o Utilities Expenses: $$1,000$ per month $($covering power, water phone, internet, etc.$).$

o Marketing and Advertising: $$800$ in July; $$900$ in August; and $$1,000$ in September.

Questions $50$ marks