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 $19.00 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 months ending inventory is 50% of the following months 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.

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 $19.00 per unit. AlI 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 May 31 Merchandise inventory Accounts receivable Accounts payable 3,800 8,600 27,800 Extracts From the General Journal 35,000 17,150 1,400 60,800 43,792 Accounts receivable, April sales 35,000 17,150 1,400 60,800 14,000 Revenue Accounts receivable, April sales Bad debt expense, percentage of April sales Allowance for doubtful accounts ay Accounts receivable, May sales Revenue Accounts receivable, April sales Merchandise inventory Accounts payable, May purchases Projected Entries to the General Journal for Selected Accounts receivable, May sales Accounts payable, May purchases Cash, payment May purchases 29,792 15,000 11,250 15,000 11,250 Anticipated Transactions as per Master Budget June 30 81,700 Accounts receivable, June sales Cost of sales for June Accounts payable, May purchases 81 700 17,200 3,750 Revenue 17 ,200 Inventory Cash, May purchases Accounts receivable, April sales Sales revenue Sales revenue Accumulated depreciation, August 2,450 67,830 86,830 2,150 Accounts receivable, July sales Accounts receivable, August sales Period fixed expenses, August July 31 67,830 86,830 575 August 31 1,575 Variable operating epenses (percent of sales8,683 8,683