Estimate Cash Collections: Varsity Company is preparing a cash budget for the month of May. The following information on accounts receivable collections is available from Varsity's past col- lection experience:

Credit sales to date are as follows:

Required: What are the estimated accounts receivable collections for May?

a. $85.100.

b. $87.100.

c. $88,100.

d. $90.100.

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Percent of current month's sales collected this month Percent of prior month's sales collected this month Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month The remaining 3 percent are not collected and are written off as bad debts. 12% 1564 75