Jasper Company has sales on account and for cash. Specifically, 64% of its sales

Question

Jasper Company has sales on account and for cash. Specifically, 64% of its sales are on account and 36% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $527,000 for April, $537,000 for May, and $562,000 for June. The beginning balance of Accounts Receivable is $291,100 on April 1.

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

April May June Cash sales 36% Sales on account 64% 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

Explanation / Answer

April May June Cash sales 36% 189720 193320 202320 Sales on account 64% 337280 343680 359680 Total sales 527000 537000 562000 JASPER COMPANY Schedule of Cash Receipts For April, May, and June April May June Cash receipts from: Cash sales 189720 193320 202320 Collection of accounts receivable 291100 337280 343680 Total budgeted cash receipts 480820 530600 546000

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