Question

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

Answer 1

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