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):

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 $156,666 Actual credit sales for April $262,666 Estimated credit sales tor May $282,666 Estimated collections in the month of sale 25% Estimated collections in the first month atter the month of sale 66% Estimated collections in the second month after the month ot sale 16% 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 ofthe month (after appropriate write-off of uncollectible accounts). 3. The net amount of accounts receivable at the end ofthe month. 4. Recalculate requirements 1 and 2 under the assumption that estimated collections in the month of sale equal 60% and in the rst month following the month of sale equal 25%. Estimated cash receipts Gross accounts receivable Net accounts receivable 43. Estimated cash receipts 4b. Gross accounts receivable