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 $532,000 for April, $542,000 for May, and $567,000 for June. The beginning balance of Accounts Receivable is $295,200 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. April May June 36% Cash sales Sales on account Total sales 64% 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

Explanation / Answer

Note :

For April Cash Sales = 36% * $ 532,000

Credit Sales = 64% * $ 542,000

April May June Cash Sales 36% 1,91,520 1,95,120 2,04,120 Credit Sales 64% 3,40,480 3,46,880 3,62,880 Total Sales 5,32,000 5,42,000 5,67,000

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