Question

Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $523,000 for April, $533,000 for May, and $558,000 for June. The beginning balance of Accounts Receivable is $304,200 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Jasper Company

Budgeted CAsh Receipts:

April May June

Cash sales (39%) $203,970 $207,870 $217,620

Cash collections 304,200 360,870 325,130

Total cash receipts $508,170 $568,740 $542,750

Step-by-step explanation:

a) Data and Calculations:

April May June

Forecast sales $523,000 $533,000 $558,000

Cash sales (39%) 203,970 207,870 217,620

Credit sales (61%) 360,870 325,130 340,380

Cash collections 304,200 360,870 325,130

Budgeted CAsh Receipts:

April May June

Cash sales (39%) $203,970 $207,870 $217,620

Cash collections 304,200 360,870 325,130

Total cash receipts $508,170 $568,740 $542,750