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In: Accounting

Jasper Company has sales on account and for cash. Specifically, 60% of its sales are on...

Jasper Company has sales on account and for cash. Specifically, 60% of its sales are on account and 40% 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 $307,400 on April 1.

Prepare a schedule of budgeted cash receipts for April, May, and June.
April May June
Cash sales 40%
Sales on account 60%
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

Solutions

Expert Solution

SOLUTION: 1
CALCULATION OF
PARTICULARS April May June
Sales $           5,25,000 $         5,35,000 $         5,60,000
Cash Sales 40% $           2,10,000 $         2,14,000 $         2,24,000
Sales on account of Sales 60% $           3,15,000 $         3,21,000 $         3,36,000
SOLUTION:2
SCHEDULE OF THE CASH RECEIPT FOR THE MONTH OF APR, MAY, JUNE
April   May   June  
Cash Receipt from Sales $           2,10,000 $         2,14,000 $         2,24,000
Collection of Account Receivable $           3,07,400 $         3,15,000 $         3,21,000
Total Budgeted Receipts $           5,17,400 $         5,29,000 $         5,45,000

ekkarill92 answered 2 years ago
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