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ABC Inc. has $40,000 accounts receivables that are current, $25,000 accounts receivables that are past due within 30 days, and $10,000 accounts receivables that are
ABC Inc. has $40,000 accounts receivables that are current, $25,000 accounts receivables that are past due within 30 days, and $10,000 accounts receivables that are past due between 30 and 60 days on December 31, 2020. ABC Inc. estimates that the percentage of uncollectible accounts receivable in the three aging groups is 1%, 5%, and 10%, respectively. What is the estimated amount of uncollectible accounts receivables of ABC Inc. at the end of 2020?
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$2,650
$750
$3,750
$7,500
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