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) $170,000 $216,000 $306,000 Actual credit sales for March Actual credit sales for April Estimated credit sales for May Estimated collectionss in the month of sale 25 % Estimated collections in the first month after the month of sale 60% 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 firm 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 (after 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 60% and in the first month following the month of sale equal 25% Estimated cash receipts Gross accounts receivable Net accounts receivable 4a. Estimated cash receipts 4b. Gross accounts receivable 1 2. 3