Question

Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. 2 June Cash sales 30% Sales 70% DD 2 III Total 3 May June JASPER COMPANY Schedule of Cash Receipts For April May, and June April Cash receipts from: Cash sales Collection of accounts receivable Total budgeted cash receipts

Answer 1

Solution

		April	May	June
Cash sales	30%	$ 157,500	$ 160,500	$ 168,000
Sales on account	70%	$ 367,500	$ 374,500	$ 392,000
Total sales		$ 525,000	$ 535,000	$ 560,000

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JASPER COMPANY
Schedule of cash receipts
For April, May and June
	April	May	June
Estimated cash receipts from:
Cash sales	$ 157,500	$ 160,500	$ 168,000
Collection of accounts receivable	$ 400,000	$ 367,500	$ 374,500
Total cash receipts	$ 557,500	$ 528,000	$ 542,500