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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

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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): $175,000 $223,000 $318,000 Actual credit aales for March Actual credit sales for April Estimated credit sales for May Estimated collections in the month of sale Estimated collections in the first month after the month of sale Estimated collections in the second month after the month of sale Estimated proviaion for bad debts (made in the month of sale) 25t 60t 10 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% 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%. 1. Estimated cash receipts 2. Gross accounts receivable 3. Net accounts receivable 4a. Estimated cash receipts b Gross accounts receivable

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