(Budgeting cash receipts) The City of Comus is preparing a cash budget for the month of May. The fol- lowing information is available with respect to its sales tax collections.

Sales tax rate 5%
Estimated retail sales in May $2,000,000 Actual retail sales in April $1,500,000 Estimated payments by merchants to city in May of sales taxes collected in May 20%
Estimated payments by merchants to city in May of sales taxes collected in April 70%
Estimated payments by merchants to city in May of sales taxes collected prior to April $10,000 Required: Compute the estimated cash receipts from sales tax collections in May.

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Sales tax rate Estimated retail sales in May Actual retail sales in April Estimated payments by merchants to city in May of sales taxes collected in May Estimated payments by merchants to city in May of sales taxes collected in April Estimated payments by merchants to city in May of sales taxes collected prior to April 5% $2,000,000 $1,500,000 20% 70% $10,000