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Papst Company is preparing its cash budget for the month of May. The following information...

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Accounting

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 firs
month following the month of sale equal 25%.
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