Question

Jasper Company has sales on account and for cash. Specifically. 55% of its sales are on account and 45% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $520,000 for April, $530,000 for May, and $555,000 for June. The beginning balance of Accounts Receivable is $302,500 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. $ $ $ Cash sales Sales on account 45% 55% April 234,000 286,000 520,000 May 238,500 291.500 530,000 June 249,750 305,250 555,000 Total sales $ $ $ May June JASPER COMPANY Schedule of Cash Receipts For April, May, and June April Cash receipts from Cash sales $ 234,000 5 Collection of accounts receivable 302.500 Total budgeted cash receipts $ 536,500 238,500 $ 249,750

Answer 1

Answer

		April	May	June
Cash sales [Total x 45%]	45%	$234,000	$238,500	$249,750
Sales on account [Total x 55%]	55%	$286,000	$291,500	$305,250
Total sales		$520,000	$530,000	$555,000

JASPER COMPANY
Cash Receipts Budget
For April, May, and June
		April	May	June
Cash receipts from:
Cash sales		$234,000	$238,500	$249,750
Collection of accounts receivable		$302,500	$286,000	$291,500
Total cash receipts		$536,500	$524,500	$541,250