Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances and merc

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Ahmed Company Purchases All Merchandise On Credit It Recently Budgeted The Month End Accounts Payable Balances And Merc 1 (45.94 KiB) Viewed 24 times

Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances and merchandise inventory balances below. Cash payments on accounts payable during each month are expected to be May, $1,600,000; June, $1,490,000; July, $1,425,000; and August, $1,495,000. May 31 June 30 July 31 August 31 Merchandise. Accounts Payable Inventory $150,000 $250,000 200,000 400,000 235,000 300,000 195,000 330,000 (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable Payments on account Subtotal Beginning accounts payable Purchases (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold July August August (400,000) (300,000) (330,000)