Question

Jasper Company has sales on account and for cash. Specifically, 59% of its sales are on account and 41% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $532,000 for April, $542,000 for May, and $567,000 for June. The beginning balance of Accounts Receivable is $296,100 on April 1.

Prepare a schedule of budgeted cash receipts for April, May, and June.

Jasper Company has sales on account and for cash. Specifically, 59% of its sales are on account and 41% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $532,000 for April, $542,000 for May, and $567,000 for June. The beginning balance of Accounts Receivable is $296,100 on April 1 Prepare a schedule of budgeted cash receipts for April, May, and June April May June Cash sales 41% Sales on account 59%) Total sales JASPER COMPANY Schedule of Cash Receipts For April, May, and June April May June Cash receipts from: Cash sales Collection of accounts receivable Total budgeted cash receipts

Answer 1

		April	May	June
Cash sales	41%	$218,120 ($532,000*41%)	$222,220 ($542,000*41%)	$232,470 ($567,000*41%)
Credit sales	59%	$313,880 ($532,000*59%)	$319,780 ($542,000*59%)	$334,530 ($567,000*59%)
Total sales		$532,000	$542,000	$567,000

JASPER COMPANY

Schedule of Cash Receipts

For April, May and June

	April	May	June
Cash receipts from :
Cash sales	$218,120	$222,220	$232,470
Collection of accounts receivable	$296,100	$313,880	$319,780
Total budgeted cash receipts	$514,220	$536,100	$552,250