Abc company has sales on account and for cash. specifically, 57% of its sales are on account and 43% are for cash. credit sales are collected in full in the month following the sale. the company forecasts sales of $516,000 for april, $526,000 for may, and $551,000 for june. the beginning balance of accounts receivable is $297,700 on april 1. prepare a schedule of budgeted cash receipts for april, may, and june.

In April:

Total sales = $516,000

cash sales = 43% × $516,000

                  = $221,880

sales on account = 57% × $516,000

                             = $294,120

In May:

Total sales = $526,000

cash sales = 43% × $526,000

                  = $226,180

sales on account = 57% × $526,000

                             = $299,820

In June:

Total sales = $551,000

cash sales = 43% × $551,000

                  = $236,930

sales on account = 57% × $551,000

                             = $314,070

Therefore,

Budget cash receipts in April = cash sales + collection on accounts receivable(beginning balance of a/c receivable on April 1)

                                                 = $221,880 + $297,700

                                                 = $519,580

Budget cash receipts in May = cash sales + collection on accounts receivable of April

                                                 = $226,180 + $294,120

                                                 = $520,300

Budget cash receipts in June = cash sales + collection on accounts receivable of May

                                                 = $236,930 + $299,820

                                                 = $536,750

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