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Please explain your answers. E8-11 (Algo) Calculating Cash Receipts [LO 8-4) Shadee Corp. expects to sell 610 sun visors in May and 440 in June.
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E8-11 (Algo) Calculating Cash Receipts [LO 8-4) Shadee Corp. expects to sell 610 sun visors in May and 440 in June. Each visor sells for $17. Shadee's beginning and ending finished goods inventories for May are 75 and 55 units, respectively. Ending finished goods inventory for June will be 65 units. It expects the following unit sales for the third quarter: July August September 545 490 440 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale, 35 percent 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 September Total Cash ReceiptsStep by Step Solution
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