Jasper Company has sales on account and for cash. Specifically, 62% of its sales

Question

Jasper Company has sales on account and for cash. Specifically, 62% of its sales are on account and 38% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $531,000 for April, $541,000 for May, and $566,000 for June. The beginning balance of Accounts Receivable is $293,600 on April 1.

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

Jasper Company has sales on account and for cash. Specifically, 62% of its sales are on account and 38% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $531,000 for April, $541,000 for May, and $566,000 for June. The beginning balance of Accounts Receivable is $293,600 on April 1.

Explanation / Answer

Statement showing Budgeted Cash Receipts Particulars April May June Total Sales           531,000.00     541,000.00    566,000.00 Cash Sales @38%    (a)           201,780.00     205,580.00    215,080.00 Credit Sales @62%           329,220.00     335,420.00    350,920.00 Collection in next month (b)           293,600.00     329,220.00    335,420.00 Total Collections a+b           495,380.00     534,800.00    550,500.00

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