You have been asked to prepare the monthly cash budget for June and July for the Merchandise and Mercantile Company. The company sells a unique product that is specially made for it by a major product manufacturer. The selling price is $34.00 per unit. All sales are on account. Merchandise purchases are also on account. The policy of the company is to purchase sufficient quantity of product to ensure that each month's ending inventory is 50% of the following month's expected sales quantity. The assignment file contains extracts from the general journal showing the journal entries pertaining to certain relevant transactions that have occurred and a set of entries the bookkeeper has provided that indicate the transactions expected to occur affecting cash, accounts payable, accounts receivable, and merchandise inventory accounts due to the projected sales revenues and projected merchandise purchases on the master budget. This analysis, with other additional data, is shown below. Assume today is May 31, 20X1, and that all dollar amounts are in thousands of dollars Information From Accounting Records and Planning Documents Cr Extracts From the May 31 Adjusted Trial Balance Cash Merchandise inventory Accounts receivable Accounts payable May 31 5,300 11,600 30,800 4,875 Extracts From the General Journal April 30 Accounts receivable, April sales Cash Bad debt expense, percentage of April sales Accounts receivable, May sales Cash Revenue Accounts receivable, April sales Allowance for doubtful accounts Revenue Accounts receivable, April sales 50,000 24,500 2,000 134,300 85,807 50,000 24,500 2,000 134,300 20,000 May 31 Accounts receivable, May sales Accounts payable, May purchases Cash, payment May purchases 65,807 19,500 14,625 19,500 Merchandise inventory Accounts payable, May purchases Projected Entries to the General Journal for Selected 14,625 Anticipated Transactions as per Master Budget 197,200 23,200 4,875 3,500 126,480 160,480 2,900 June 30 Accounts receivable, June sales 197,200 23,200 4,875 3,500 126,480 160,480 950 Revenue Cost of sales for June Accounts payable, May purchases Cash Inventory Cash, May purchases Accounts receivable, April sales Sales revenue Sales revenue Accumulated depreciation, August July 31 Accounts receivable, July sales August 31 Accounts receivable, August sales Period fixed expenses, August Cash 1,950 16,048 Variable operating expenses (percent of sales) Cash 16,048