The following trial balance was drawn from the records of Jordan Company as of October 1, year 2. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 20,500 69,000 44,500 290,000 $ 78,600 76,500 190,000 59,000 19,900 $ 424,000 $ 424,000 Required a-1. Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $240,000, consisting of $49,000 in cash and $191,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. a-2. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $44,500. Cost of goods sold for October is expected to be $76,500. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Eighty percent of accounts payable is paid in the month that the purchase occurs; the remaining 20 percent is paid in the following month. a-3. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,800 2,300 3,100 2,500 38,500 6,900 1,900 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $44,500. Cost of goods sold for October is expected to be $76,500. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Eighty percent of accounts payable is paid in the month that the purchase occurs; the remaining 20 percent is paid in the following month. Note: Round your answers to the nearest whole dollar. Inventory Purchases Budget October November December Inventory needed Required purchases (on account) Schedule of Cash Payments Payment of current months' accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory 0 0 0 $ 0 $ 0 $ 0 0 0 0 Show less