Sir please help me sir urgently please AccountingElite Store Ltd, a retail shop, projects sales for itsfirst three months of operation as follows.JulyAugustSeptemberCredit$220,000$245,000$346,000salesCash$140,000$ 80,000$114,000salesTotal$360,000$325,000$460,000salesInventory on 1 July is $60,000. Subsequentbeginning inventories should be 30% of thatmonth's cost of goods sold. Goods are priced at125% of their cost.60% of purchases are paid for in the month ofpurchase; the balance is paid in the followingmonth.It is expected that 50% of credit sales will becollected in the month following sale, 35% in thesecond month following the sale and thebalance the third month. A 5% discount is givenif payment is received in the month followingsale.What is the projected cost of purchases for July?Select one:a. $306,000b. None of thesec. $78,000d. $201,600e. $261,600

Cost of Purchase refers to Cost of Materials Purchased during the period either in cash or in…

Answered: What is the projected cost of purchases…

What is the projected cost of purchases for July? Select one: a. $306,000 b. None of these c. $78,000 d. $201,600 e. $261,600

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 12PB: Prepare journal entries to record the following transactions that occurred in March: A. on first day...

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Question

Sir please help me sir urgently please

Accounting
Elite Store Ltd, a retail shop, projects sales for its
first three months of operation as follows.
July
August
September
Credit
$220,000
$245,000
$346,000
sales
Cash
$140,000
$ 80,000
$114,000
sales
Total
$360,000
$325,000
$460,000
sales
Inventory on 1 July is $60,000. Subsequent
beginning inventories should be 30% of that
month's cost of goods sold. Goods are priced at
125% of their cost.
60% of purchases are paid for in the month of
purchase; the balance is paid in the following
month.
It is expected that 50% of credit sales will be
collected in the month following sale, 35% in the
second month following the sale and the
balance the third month. A 5% discount is given
if payment is received in the month following
sale.
What is the projected cost of purchases for July?
Select one:
a. $306,000
b. None of these
c. $78,000
d. $201,600
e. $261,600

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