Albert Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
? Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January.
? Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
? The cost of goods sold is 75% of sales.
? The company purchases 40% of its merchandise in the month prior to the month of sale and 60% in the month of sale. Payment for merchandise is made in the month following the purchase.
? The November beginning balance in the accounts receivable account is $70,000.
? The November beginning balance in the accounts payable account is $257,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.

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The Answer of Albert Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
? Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January.
? Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
? The cost of goods sold is 75% of sales.
? The company purchases 40% of its merchandise in the month prior to the month of sale and 60% in the month of sale. Payment for merchandise is made in the month following the purchase.
? The November beginning balance in the accounts receivable account is $70,000.
? The November beginning balance in the accounts payable account is $257,000.
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.

Albert Corporation Is a Wholesaler of Industrial Goods