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help with this one. Papst Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable

help with this one.

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Papst Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable {based on sales made to customers on open account}: Actual credit sales for March $210,000 Actual credit sales for April $272,000 Estimated credit sales for May $402,000 Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 50% Estimated collections in the second month after the month of sale 10% Estimated provision for bad debts [made in the month of sale} 5% The rm writes off all uncollectible accounts at the end of the second month after the month of sale. Required: Determine for Papst Company for the month of May: 1. The estimated cash receipts from accounts receivable collections. 2. The gross amount of accounts receivable at the end of the month {alter appropriate write-off of uncollectible accounts]. 3. The net amount of accounts receivable at the end of the month. 4. Recalculate requirements 1 and 2 under the assumption that estimated collections in the month of sale equal 50% and in the rst month following the month of sale equal 25%. Estimated cash receipts Gross amounts receivable Net accounts receivable . Estimated cash receipts . Gross accounts receivable

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