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.

Answer 1

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

April May June

Cash Sales 30% $157,500 $160,500 $ 168,000

Credit Sales 70 % $400,000 $367,500 $374,500

Total Collection $557,500 $528,000 $542,500

Explanation :

Take note of when the collection is being done !