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 $ $165,000$

Actual credit sales for April $ $209,000$

Estimated credit sales for May $ $294,000$

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:

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 $25\%.$