Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $530,000 for April, $540,000 for May, and $565,000 for June. The beginning balance of Accounts Receivable is $301,100 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Question

Annika Daniels

Business

19 August, 06:25

Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $530,000 for April, $540,000 for May, and $565,000 for June. The beginning balance of Accounts Receivable is $301,100 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

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Lillie Peterson · Answer 1

Answer and Explanation:

As per the data given in the question,

Particulars April May June

Cash sales (Total * 39%) $206,700 $210,600 $220,350

Sales on account (Total * 61%) $323,300 $329,400 $344,650

Total sales $530,000 $540,000 $565,000

Jasper Company

Cash receipts budget

For April, May and June

Particulars April May June

Cash receipts from:

Cash sales $206,700 $210,600 $220,350

Accumulation of

accounts receivable $301,110 $323,300 $329,000

(account receivable Apr-1) (April sale on account) (May sale on account)

Total cash receipt $507,810 $533,900 $549,350

We simply added the cash balance and the accumulation of the account receivable so that the total cash receipts could come