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x CAccounting question | Chegg.cx Home YOSEF hm.tpx HW Ch 8 instructions I help

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Question

x CAccounting question | Chegg.cx Home YOSEF hm.tpx HW Ch 8 instructions I help Question 1 (of 4) Save & xSubmit Time remelning: 2:3120 2.00 points E8-11 Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 610 sun visors in May and 310 in June. Each visor sells for $16. Shadee's beginning and ending finished goods inventories for May are 60 and 60 units, respectively. Ending finished goods inventory for June will be 55 units It expects the following unit salles for the third quarter: July August 560 490 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 37 peroent is collected during the following month, and 13 percent is never collected. Required: 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 Total Cash Reoeipts Hints References eBook &Resources; Hint #1

Explanation / Answer

So, collections for August and September are $7,598 and $6,920

Particulars Calculations Month May June July Aug Sep A Quantity sold             610             310             560             490             450 B Selling Price                16                16                16                16                16 C = A x B Sales Consideration          9,760          4,960          8,960          7,840          7,200 D = C x 60% Cash Sales          5,856          2,976          5,376          4,704          4,320 E = C - D Credit Sales          3,904          1,984          3,584          3,136          2,880 F = E x 50% Collection in month of Sales          1,952             992          1,792          1,568          1,440 G = E of previous month x 37% Collection in following month                 -            1,444             734          1,326          1,160 H = D + F + G Total collection          7,808          5,412          7,902          7,598          6,920