value: 2.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects
ID: 2516759 • Letter: V
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value: 2.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 540 sun visors in May and 340 in June. Each visor sells for $13. Shadee's beginning and ending finished goods inventories for May are 90 and 45 units, respectively. Ending finished goods inventory for June will be 65 units. It expects the following unit sales for the third quarter: July August 480 September 460 530 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 39 percent is collected during the following month, and 11 percent is never collected Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) August September Total Cash ReceiptsExplanation / Answer
July sales : 530*13=6890
August :480*13= 6240
September = 460*13= 5980
**60% cash sales .then 40% is credit sales
August September Cash sales 6240*.60= 3744 5980*.60=3588 credit sales collection July 6890*.40*39= 1074.84 August 6240*.40*.50= 1248 6240*.40*.39= 973.44 september 5980*.40*.50= 1196 Total sales 6066.84 [rounded to 6067] 5757.44 [rounded to 5757]Related Questions
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