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Shadee Corporation expects to sell 650 sun shades in May and 330 in June. Each shades sells for $16. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 70 shades. It expects the following unit sales for the third quarter: July 515 August 470 September 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 40 percent is collected during the following month, and 6 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September.

Shadee Corporation expects to sell 650 sun shades in May and 330 in June. Each shades sells for $16. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 70 shades. It expects the following unit sales for the third quarter: July 515 August 470 September 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 40 percent is collected during the following month, and 6 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September.

FINANCIAL ACCOUNTING
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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Shadee Corporation expects to sell 650 sun shades in May and 330 in June. Each shades sells for $16. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 70 shades. It expects the following unit sales for the third quarter: July 515 August 470 September 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 40 percent is collected during the following month, and 6 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September.
Transcribed Image Text:Shadee Corporation expects to sell 650 sun shades in May and 330 in June. Each shades sells for $16. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 70 shades. It expects the following unit sales for the third quarter: July 515 August 470 September 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 40 percent is collected during the following month, and 6 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September.
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