Ahlia Company's budgeted sales and direct materials purchases are as follows.

Budgeted Sales Budgeted D.M. Purchases

January 2021 $300,000 $60,000

February 2021 330,000 70,000

March 2021 350,000 80,000

Ahlia's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Ahlias purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions (5 marks each)

1) Prepare a schedule of expected collections from customers for March 2021.

2) Prepare a schedule of expected payments for direct materials for March 2021.

Ahlia Company's budgeted sales and direct materials purchases are as follows.

Budgeted Sales Budgeted D.M. Purchases

January 2021 $300,000 $60,000

February 2021 330,000 70,000

March 2021 350,000 80,000

Ahlia's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Ahlias purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions (5 marks each)

1) Prepare a schedule of expected collections from customers for March 2021.

2) Prepare a schedule of expected payments for direct materials for March 2021.