Ishima Corporation is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable:

What are the estimated cash receipts from accounts receivable collections in May?
(1) $156,000.
(2) $163,000.
(3) $164,000.
(4) $171,000.

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Estimated credit sales for May Actual credit sales for April Estimated collections in May for credit sales in May Estimated collections in May for credit sales in April Estimated collections in May for credit sales prior to April Estimated write-offs in May for uncollectible credit sales. . Estimated provision for bad debts in May for credit sales in May $200,000 150,000 25% 70% $ 16,000 8,000 7,000 .