Question

Jasper Company has sales on account and for cash. Specifically, 57% of its sales are on account and 43% 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 $302,100 on April 1.

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

		April	May	June
Cash sales	43%
Sales on account	57%
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

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Answer 1

Schedule of budgeted cash receipts for April, May, and June:

Cash Sale during the month
Description	Percentage	April	May	June
Total sale	100	532,000	542,000	567,000
Cash Sale	43	228,760	233,060	243,810
Credit Sale	57	303,240	308,940	323,190

JASPER COMPANY SCHEDULE OF CASH RECEIPTS FOR April, May, June
	April	May	June
Cash Receipts from:
Cash Sale	228,760	233,060	243,810
Collection of accounts receivable	302,100	303,240	308,940
Total Budgeted Cash Receipts	530,860	536,300	552,750

Notes:

As given information Jasper Company has received the credit sale in the month following the sale that means March Credit sale collected in April, April credit sale collected in May ,May credit sale collected in June and so on.

March Credit sale received in April: $302,100