Question

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 $532,000 for April, $542,000 for May, and $567,000 for June. The beginning balance of Accounts Receivable is $308,500 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

The correct answer is :

Schedule of budgeted cash receipts
	April	May	June
Cash Sales	2,02,160	2,05,960	2,15,460
Credit Sales	3,08,500	3,29,840	3,36,040
Total Cash Receipts	5,10,660	5,35,800	5,51,500

Note :

1. Sales Bifercation :

	April	May	June
Sales	5,32,000	5,42,000	5,67,000
Cash Sales (38%)	2,02,160	2,05,960	2,15,460
Credit Sales ( 62%)	3,29,840	3,36,040	3,51,540

2. The Accounts Receivable Beginning Balance will be realised in April

Further, the credit sales of April would be collected in May

the credit sales of may would be collected in June

the credit sales of June would be collected in July