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

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 1 year ago

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