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:

The estimated cash receipts from accounts receivable collections.

The gross amount of accounts receivable at the end of the month $($after appropriate write$-$off of uncollectible accounts$).$

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

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 $25\%.$