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 $516,000 for April, $526,000 for May, and $551,000 for June. The beginning balance of Accounts Receivable is $295,500 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
Cash Sales	$ 206,400	$ 210,400	$ 220,400
Receipt from Prior Periods :
Account Receivable	$ 295,500
On Account Sales of April		$ 309,600
On Account Sales of May			$ 315,600
Total Cash Receipt	$ 501,900	$ 520,000	$ 536,000

Working :

Particulars	April	May	June
Forecasted Sales	$ 516,000	$ 526,000	$ 551,000
Cash Sales (40% of Sales)	$ 206,400	$ 210,400	$ 220,400
On Account Sales (60% of Sales)	$ 309,600	$ 315,600	$ 330,600

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