ABC received $1,500,000 of cash for credit sales and wrote off $40,000 as bad debts at year-end. Assuming that ABC uses the aging method and that the aging method determined that 80% of its ending balance of AR is current with a 2% likely uncollectible rate; and that 20% of the ending balance is noncurrent with a likely 20% uncollectible rate. how does the aging method worth in this problem?