**Jasper Company Sales and Cash Receipts Overview**Jasper Company conducts sales both on account and for cash. Specifically, 61% of its sales are on account, while 39% are for cash. Credit sales are collected in full in the month following the sale.**Projected Monthly Sales:**- April: $526,000- May: $536,000- June: $561,000**Beginning Balance:**- Accounts Receivable on April 1: $299,400**Objective:**- To prepare a schedule of budgeted cash receipts for April, May, and June.**Sales Breakdown Table:**| | April | May | June ||-----------------|-------|-----|------|| **Cash sales** | 39% | | || **Sales on account** | 61% | | || **Total sales** | $0 | $0 | $0 |**Jasper Company Schedule of Cash Receipts (April, May, and June):**This section describes the format to calculate cash receipts from the following:| | April | May | June ||-------------------------|-------|-----|------|| **Cash receipts from:** | | | || Cash sales | | | || Collection of accounts receivable | | | || **Total budgeted cash receipts** | | | |The schedule will help in forecasting cash flow for the upcoming months by considering both cash sales and collections from previous credit sales. Each month's cash receipts will include immediate cash sales and the collections from the accounts receivable of the previous month.

Formula: Cash collection = Credit sales x cash collection %Schedule of budgeted cash receipts: Amounts in $

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 $526,000 for April, $536,000 for May, and $561,000 for June. The beginning balance of Accounts Receivable is $299,400 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. April May June Canh geles 20%

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 $526,000 for April, $536,000 for May, and $561,000 for June. The beginning balance of Accounts Receivable is $299,400 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. April May June Canh geles 20%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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