Question

Exercise 20-18 Budgeted cash receipts LO P2

Jasper Company has sales on account and for cash. Specifically, 62% of its sales are on account and 38% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $528,000 for April, $538,000 for May, and $563,000 for June. The beginning balance of Accounts Receivable is $308,900 on April 1.

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

		April	May	June
Cash sales	38%
Sales on account	62%
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

Budgeted cash receipts for April, May and June.

		April	May	June
Cash sales	38%	$200,640 ($528,000 * 38%)	$204,440 ($538,000 * 38%)	$213,940 ($563,000 * 38%)
Sales on account	62%	$327,360 ($528,000 * 62%)	$333,560 ($538,000 * 62%)	$349,060 ($563,000 * 62%)
Total sales		$528,000	$538,000	$563,000

	April	May	June
Cash receipts from:
Cash sales	$200,640	$204,440	$213,940
Collection of accounts receivable	$308,900	$327,360	$333,560
Total budgeted cash receipts	$509,540	$531,800	$547,500

April Sales on account collected in May and May sales on account collected in June.