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

Required:
What are the estimated cash receipts from accounts receivable collections in May?

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Estimated credit sales for May $200,000 $150,000 20% Actual credit sales for April Estimated collection in May for credit sales in May Estimated collection in May for credit sales in April credit sales prior to April Estimated write-offs in May 70% Estimated collection in May for $ 12,000 $ 8,000 $ 7,000 for uncollectible credit sales Estimated bad debts expense in May for credit sales in May