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At the end of January, $3,600 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected.

At the end of January, $3,600 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. The note receivable of $20,600 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.

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