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 $ 145,000

Actual credit sales for April $ 181,000

Estimated credit sales for May $ 246,000 Estimated collections 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:

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): 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%