Question

Jasper Company has sales on account and for cash. Specifically, 56% of its sales are on account and 44% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $519,000 for April, $529,000 for May, and $554,000 for June. The beginning balance of Accounts Receivable is $309,100 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Solution :

Schedule of Budgeted Cash Receipt :

Particulars	April	May	June
(b) Cash Sales	$ 228,360	$ 232,760	$ 243,760
(b) Opening Account Receivable	$ 309,100
(c) Received on Account Sales of April		$ 290,640
(d) Received on Account Sales of May			$ 296,240
(e) Total Cash Received	$ 537,460	$ 523,400	$ 540,000

Working :

Computation of Cash Sales and Credit Sales :

Particulars	April	May	June
(a) Budgeted Sales	$ 519,000	$ 529,000	$ 554,000
(b) Cash Sales (a * 44%)	$ 228,360	$ 232,760	$ 243,760
(c) Credit Sales (a * 56%)	$ 290,640	$ 296,240	$ 310,240

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