Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shades sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: July August September 515 440 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...
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Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shades sells for $11. Shadee's beginning and ending
finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades.
It expects the following unit sales for the third quarter:
July
August
September
515
440
420
Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected
during the following month, and 12 percent is never collected.
Required:
Calculate Shadee's total cash receipts for August and September.
Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar.
Total Cash Receipts
August
September
Transcribed Image Text:Shadee Corporation expects to sell 540 sun shades in May and 370 in June. Each shades sells for $11. Shadee's beginning and ending finished goods inventories for May are 85 and 55 shades, respectively. Ending finished goods inventory for June will be 55 shades. It expects the following unit sales for the third quarter: July August September 515 440 420 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 36 percent is collected during the following month, and 12 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September
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