Question

Jasper Company has sales on account and for cash. Specifically, 64% of its sales are on account and 36% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $520,000 for April, $530,000 for May, and $555,000 for June. The beginning balance of Accounts Receivable is $304,500 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Answer:

See the explanation below

Explanation:

                                       Jasper Company

Schedule of Budgeted Cash Receipts for April, May, and June

Details                        April ($)               May ($)             June ($)

March Sales              304,500                   0                        0

April Sales                  187,200             332,800                  0

May Sales                       0                    190,800            339,200

June sales                      0                        0                  199,800

Total receipts           491,700             523,600           539,000