Papst Company is preparing its cash budget for the month of May. The following information is available regarding your accounts receivable (based on sales made to customers on open account):

March Actual Credit Sales	ps	185.000
April Actual Credit Sales	ps	237,000
Estimated credit sales for May	ps	342,000
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 company 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 the collection of accounts receivable.

2.	The gross amount of accounts receivable at the end of the month (after the corresponding write-off of bad debts).

3.	The net amount of accounts receivable at the end of the month.

4.	Recalculate requirements (1) and (2) assuming that the estimated collections in the month of sale = 60% and in the first month following the month of sale = 25%.