Question

Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Answer:

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

                                 April            May          June

Cash Sales 30%    $157,500  $160,500  $ 168,000

Credit Sales 70 % $400,000 $367,500  $374,500

Total Collection    $557,500  $528,000 $542,500

Explanation :

Take note of when the collection is being done !